UAE's Aldar Properties plans $750m spend in 2019

Author: 
Tue, 2019-05-14 23:03

ABU DHABI: Aldar Properties, the largest property developer in
Abu Dhabi, plans to spend 2.75 billion dirhams ($749 million) in
2019, its chief financial officer said after the company reported a
17.3 percent drop in first-quarter profit.
The state-linked builder of Abu Dhabi’s Formula One circuit made
a net profit attributable to owners of 553 million dirhams in the
three months to March 31, it said on Tuesday. That compared with a
net profit attributable to owners of 669.5 million dirhams in the
same period a year earlier.

 

SICO estimated a first-quarter profit of 546.61 million dirhams
for Aldar, while EFG Hermes’ estimate was for 600 million
dirhams. The lower net profit was partly dented by impairments and
writedowns that almost doubled. Revenue totalled 1.77 billion
dirhams in first quarter compared with 1.5 billion dirhams a year
earlier. 
Aldar’s spending in 2019 is earmarked for residential and some
commercial projects, said Chief Financial Officer Greg Fewer on a
media call. The company has spent approximately 550 million dirhams
in the first quarter, he said. 
Despite a weak property market in Abu Dhabi, Aldar expects
full-year sales of 4 billion dirhams, with first-quarter actual
sales totalling 1 billion dirhams. 
“We are keeping our 4 billion dirhams guidance … reflecting our
pipeline of projects, our customers and land bank,” he
said. 
The bullish view is also due to the recent freehold law passed by
Abu Dhabi allowing foreigners to own land. “It opens a multitude
of new buyers and will have a positive impact on sales,” Fewer
said.

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Source: FS – All-News-Economy
UAE's Aldar Properties plans 0m spend in 2019