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Developer Aldar Properties expects its fee-based revenue to increase as it expands its asset management business amid growing profitability.
The company manages about Dh2 billion in assets owned by third parties and is “taking on more asset management” projects, chief executive Talal Al Dhiyebi told Bloomberg TV yesterday.
Aldar Development, the unit responsible for developing its 7,500-hectare land bank in Abu Dhabi, also reported strong growth.
“Our development unit, which is normally more cyclical compared to our asset management [business], right now gives a very strong recurring income,” said Mr Al Dhiyebi.
He said cash collection for the developer remained strong.
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Aldar Properties, the UAE’s biggest listed developer, reported a 28 per cent increase in its fourth-quarter net profit on the back of higher revenue.
Net profit for the three months to December 31, 2020, jumped to Dh729 million, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares trade. Revenue grew 19 per cent to Dh2.53 billion.
“Aldar’s powerful performance in 2020 has set the tone for a new phase of sustainable growth,” Talal Al Dhiyebi, group chief executive of Aldar Properties, said.
“We have adopted a new operating model to propel the company to the next level in terms of scale and breadth of activity and to meet our ambitious sustainability targets. This will involve a major programme to accelerate the recycling of capital and to invest in expansion.”