Aldar Properties, the biggest-listed developer in Abu Dhabi, recorded a 9.7 per cent increase in its second-quarter net income as recurring revenues climbed.

Aldar, the builder of Formula 1 circuit in Abu Dhabi, said its net profit reached AED657m ($197m) for the three-month period ending 30 June, which compares with a profit of AED599.2m for the corresponding period in 2015, according to a statement to the Abu Dhabi Securities Exchange (ADX), where its shares are traded.

The company, in which state-owned Mubadala Development Company owns a minority stake, said gross profit from recurring revenue assets rose 12 per cent to AED382m. It reported group quarterly revenues of AED1.7bn, without giving figures for corresponding quarter in 2015.

The recurring revenues reflect strong occupancy levels across its portfolio, mainly driven by its flagship retail project Yas Mall, which recorded a 98 per cent occupancy rate.

Aldar’s hotel occupancy rate, however, slumped to 76 per cent, down from 81 per cent reported at the end of first quarter of this year. The company said its occupancy figures are still higher than the Abu Dhabi average.

Aldar said its off plan sales exceeded AED1bn during the second quarter of 2016. It recorded sales of AED940m in its Yas Acres and Mayan developments and AED90m for the West Yas project, the developer said adding that its Yas Acres schemes is 80 per cent sold across Phase I and II, while 75 per cent of its Mayan development has been sold to date.

“With over AED1bn in off-plan sales during the quarter and AED1.9bn in the first six months of 2016, we continue to see strong demand for high-quality real estate products,’’ Aldar CEO Mohamed Khalifa al-Mubarak, said in the statement. “We remain a strong, resilient business with a clear strategy.”

The company in April announced the launch of a AED6bn Yas Acres villa project at the Yas Island development, the largest project for the developer to date, which will include 1,315 villas.

The project, when finished, will add to several Aldar schemes on Yas Island. Located on the northern shores of the island, the scheme will house 15,000 residents and will offer access to a golf course, a club house, parks, schools and other waterfront facilities, the company said in a statement.