DUBAI- Abu Dhabi's Aldar Properties posted an 80% rise in first-quarter net profit, partly helped by a one-off gain from completion of a property transaction with state-backed ADQ.
Net profit jumped to 544 million dirhams ($148.12 million) in the quarter that ended March 31, from 302 million dirhams in the same period a year earlier.
Aldar late last year agreed to take over the management and development of government capital projects worth 30 billion dirhams under a memorandum of understanding with state-backed ADQ.
Even without the one-off gain, Aldar's quarterly net profit rose 47%.
EFG Hermes had projected a net profit of 370 million dirhams for the property firm.
Aldar Development achieved property sales of above 1 billion dirhams for the third consecutive quarter, unlocking demand for prime real estate in Abu Dhabi, it said.
"Thanks to the UAE's world-leading vaccination programme, we can now begin to look beyond COVID-19 and to a return of the UAE economy to its long-term growth trajectory, with improving real estate supply-demand dynamics," CEO Talal al-Dhiyebi said in a statement.
Aldar has been looking to expand outside its core UAE market. It is leading a consortium that has submitted a non-binding offer to acquire a majority stake in one of Egypt’s listed leading real estate development companies, Sixth of October Development and Investment Co. ($1 = 3.6728 UAE dirham)
(Reporting by Saeed Azhar Editing by Bernadette Baum) ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: email@example.com))