Abu Dhabi’s Aldar Properties posts 54% jump in second-quarter profit

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DUBAI, July 28 (Reuters) – Aldar Properties, the builder of the Abu Dhabi Formula One motor racing circuit, on Thursday reported a 54% rise in second-quarter profit on the back of record sales thanks to a strong local and international demand.

Profit attributable to shareholders stood at 803.99 million dirhams ($218.91 million) for the three months to June 30, compared to 520.83 million dirhams a year earlier.

The group’s sales over the quarter increased by 33% to 3.12 billion dirhams.

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The Abu Dhabi developer also said it has signed an agreement with Abu Dhabi state fund Mubadala Investment Company to acquire four commercial towers that are part of Abu Dhabi Global Market, the emirate’s international financial hub.

The Al Sila, Al Sarab, Al Maqam and Al Khatem towers, which have a total net leasable area of ​​180,000 square meters, are valued at 4.3 billion dirhams, he said.

Aldar’s finance and sustainability director, Greg Fewer, said in a call with reporters that the company has an additional 5 billion dirhams of equity that will be deployed over the next 12 months.

The Central Bank of the United Arab Emirates announced on Wednesday that it was raising its key rate by three-quarters of a percentage point to 2.4% from Thursday, in line with the increase in the United States Federal Reserve as its currency is pegged on the dollar. Read more

A correlation between home sales and long-term interest rates isn’t as straightforward for Aldar, Fewer said, because the company has a lot of cash buyers.

But borrowing costs would be impacted, he said.

“We have been very lucky to have pre-hedged and bought swaps over the last 12 months when rates were quite attractive. So we have already locked in more than a billion dirhams of fixed rates in anticipation of the acquisitions that we did,” he said. said.

($1 = 3.6727 UAE dirham)

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Reporting by Hadeel Al Sayegh Editing by David Goodman, Robert Birsel

Our standards: The Thomson Reuters Trust Principles.

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