Aldar Properties, the state-linked builder of Abu Dhabi’s Formula One circuit, reported a 5.6 per cent drop in second-quarter profit on Thursday amid a double-digit drop in revenue.
The results come against a backdrop of a slowing economy and property market in the oil-rich capital of the United Arab Emirates.
Aldar made a net profit attributable to owners of Dhs620m ($169m) in the three months to June 30 compared to Dhs657.4m in the same period a year ago, its full financial statement showed.
Earlier in a statement on the company website, Aldar said it made a net profit of Dhs620m in the three months to June 30 compared to Dhs654m in the prior-year period.
SICO Bahrain and EFG Hermes had forecast Aldar would make a quarterly a profit of Dhs631.72m and Dhs600m respectively.
Aldar’s second quarter revenues totalled Dhs1.35bn versus Dhs1.7bn in second quarter 2016, down roughly 20 per cent.
Four new investments were committed during the first six months of 2017, completing Aldar’s Dhs3bn investment programme. Aldar continues to assess opportunities for high-quality assets to grow recurring revenues, it said in a statement.
The company booked lower impairments of Dhs6.84m in second quarter compared to Dhs26m a year ago.
Aldar said it appointed a developer for the the Dhs1bn media and entertainment free zone project on Abu Dhabi’s Yas island.