Aldar Properties, Abu Dhabi’s biggest real estate developer by market capitalisation, will introduce a new system of calculating dividend for its shareholders in 2016, according to its annual report published on Wednesday.

The new dividend policy, made up of two parts, is based on the underlying cash flow performance of the company’s business. The first will be a pay-out of 65-80 per cent of distributable free cash flow derived from its wholly owned investment properties, plus a discretionary second part based on cash profits from the completion of newly-built developments.

The new system of calculation will lead to higher pay-outs, news agency Reuters cited Aldar’s chairman Abubaker al-Khoori as saying on the sidelines of firm’s annual general meeting. “There is a formula for dividend pay-outs from now on and dividends will grow as the company grows,” he said.

Aldar, which will pay a cash dividend of AED0.1 per share for 2015, up from AED0.09 dirhams per share for the prior year, has been focused on developing recurring revenue streams in recent years through its leasing business. Revenues from such operations are considered more stable than those derived from build-and-sell property development.

Aldar’s 2015 net income jumped 13 per cent to AED2.56bn ($697m), while its gross profit from recurring revenue surged 49 per cent to AED1.51bn last year.

Abu Dhabi house prices were flat last year, while apartment prices rose 4 percent, according to Asteco report in February, which forecasts a further slowdown for property sector in following 12 months as the government cuts spending following the sustained slump in oil prices and salaries stagnate.