Abu Dhabi's Q Holding second-quarter profit jumps on higher revenue

The ADX-listed investment company acquired developer Reem Investments in June

An artist's impression of a house in Reem Hills, a mixed use development by Q Holding. Photo: Q Holding

Abu Dhabi-listed Q Holding said its second-quarter profit surged as revenue from customer contracts, rental income and dividend income rose during the period.

Profit attributable to owners of the parent company in the three-month period to the end of June jumped to about Dh526 million ($143m), from Dh44m in the same period a year earlier, the company said in a filing to the Abu Dhabi Securities Exchange on Friday.

Second-quarter revenue rose 16 per cent, year on year, to Dh144m, driven largely by growth in rental incomes, the company's financial income statement showed.

Revenue from rental income rose to Dh87.5m, from Dh62.5m while that from dividend income increased to Dh30.2m, from Dh29.6m.

Established in 2005, Q Holding operates across sectors such as real estate, services and hospitality, and has diversified investments through its 12 subsidiaries.

Q Holding, which was formerly known as Al Qudra Holding, said that effective from June 2, it acquired a 100 per cent stake in Reem Investments for a total consideration of Dh5.8 billion.

In May, Q Holding's shareholders approved the acquisition of developer Reem Investments as part of its strategy to broaden its investment portfolio.

The deal was part of “efforts to increase our investment portfolio and develop our business performance in line with the board of directors’ strategies to invest in selected industries to meet the local and international market need”, Abdulla Al Hamed, chairman of Q Holding, said at the time.

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Reem Hills project is 'truly unique', says Q Holding chief

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Reem Investments is a master developer and holds assets in locations such as the Najmat on Al Reem Island and Rawdhat on Old Airport Road in the UAE capital.

Abu Dhabi recorded 7,474 property transactions worth more than Dh22.51bn in the first six months of the year, as the UAE’s property market continues to rebound from the coronavirus-induced slowdown.

The emirate recorded 3,568 property purchase and sale transactions worth Dh8.9bn and 3,906 mortgage transactions worth Dh13.6bn during the January-June period, Abu Dhabi's Department of Municipalities and Transport said last week.

Pent-up demand and improved investor sentiment have helped to drive the UAE's property sales, particularly in Dubai and Abu Dhabi, amid a wider pick-up in economic activity.