Abu Dhabi-based Aldar Properties’ profits grew by 18 per cent in the second quarter of 2015.

Aldar’s net profit was AED601m ($164m) from AED509m in the second quarter of 2014, due to the continued growth in recurring revenues, higher development margins and lower finance costs.

Gross profit from recurring revenue assets rose 60 per cent to AED340m in the second quarter from AED213m. The revenues came from occupied residential space at The Gate Towers and Al-Rayyana, and Yas Mall.

The company has witnessed very strong growth in revenues and income for the second quarter of 2015 as a whole.

Aldar’s finances also improved. During the second quarter, it repaid AED1.1bn of loans, reducing gross debt to AED7.1bn. Its cash position also marginally increased to AED5.3bn at the end of the second quarter of 2015, following the receipt of AED1.2bn in government infrastructure receivables.

 “Aldar had a strong second quarter driven by the continued growth and stabilisation of our recurring revenue asset portfolio,” says Mohammed al-Mubarak, CEO, Aldar Properties. “This has resulted in an improvement in the underlying quality of earnings. We remain on track to meet our target level of debt and have paid off a further AED1.1bn during the quarter. Positive interest in our new developments – Nareel, al-Merief and Meera – demonstrates that we are bringing the right products to market at the right time.” 

The stability in the Abu Dhabi market has proved to have a positive influence on Aldar. During the first half of this year, Abu Dhabi’s real estate market continued with a period of stabilisation across all asset classes, according to a mid-year report produced by US-based real estate firm JLL.