The major Abu-Dhabi based real estate developer, Aldar Properties, has registered 18.5% rise in second quarter net profit. The company attributed the high revenues to the good revenue margins and low financial costs.
Aldar Properties, which is linked to Abu Dhabi government, has achieved profits of 1.11 billion dirhams which is lower than last year’s profits.
However, last year’s revenues were exceptionally high as Aldar Properties delivered many residential units.
The company has achieved its quarterly profits from the recurring revenues streams like the property leasing, retail, and hospitality business. The profits margin of this sector has surged by 60% to 345 million dirhams compared with the last year.
The company repaid 1.11 billion of its debts reducing it to 7.1 billion dirhams. Officials from inside the company noted that there has been talks with banks to refinance the rest debts at cheaper rates and longer periods.