Abu Dhabi: Aldar Properties, Abu Dhabi’s largest real estate company by market capitalisation yesterday reported a whopping 228 per cent year-on-year jump in fiscal second quarter net profit to Dh417.9 million while its total revenue quarter-on-quarter rose 497 per cent to Dh4,631.2 million.
In a statement, Aldar said its fiscal first-half net profit rose to Dh896.1 million from Dh316.4 million in the corresponding period a year ago, while revenue for the same period rose 427 per cent on the year to Dh8220.3 million.
Aldar said its gross debt declined at the end of June to Dh14,358 million from Dh18,295 million at the end of December 2011.
“Aldar benefits from highly predictable and stable ongoing cash flows with Dh12 billion cash still to be received from the three main asset sale agreements signed with the government of Abu Dhabi between 2009 and 2011. The Government asset sale agreements also provide a source of stable earnings, including Dh3.6 billion of revenue still to be recognised relating to serviced land sales at Al Raha Beach. These contracted sales provide the foundation for Aldar’s strong ongoing revenue and cash flow visibility over the coming quarters,” the statement added.
Commenting on Aldar’s quarterly results, ali Eid Al Mheiri, chairman of Aldar Properties, said: “Aldar’s results clearly demonstrate its strong financial position. Impressive quarterly performance has been driven by the delivery of a substantial volume of units to our customers including the government of Abu Dhabi.”
Al Mheiri added: “During the second half of the year, Aldar will continue to deliver strong revenues and predictable cash flows. This stability enables us to focus on our long-term strategy- to remain Abu Dhabi’s pre-eminent developer. We have a strong pipeline of development projects to deliver over the second half of the year and into 2013 and we look forward to contributing profitably to Abu Dhabi’s future real estate pipeline.”
Aldar said its delivery programme will continue into the second half of the year with a focus on delivery and handover of the remaining units and land plots at Al Raha Beach.
At the end of June, Aldar said it had a cash balance of Dh2,459.6 million and Dh3.2 billion of available liquidity from the credit facility with National Bank of Abu Dhabi, indicating ample working capital and liquidity to deliver on its business plan.
Aldar’s ongoing programme of debt reduction continued during the quarter ended June with repayments totalling Dh4.3 billion, including the early retirement of Dh1.9 billion term loan.
During the second quarter, Aldar said it handed over 1,058 residential units to customers at Al Raha Beach, including the government of Abu Dhabi. A further 680 units have been sold and await completion and hand over. Aldar’s remaining inventory for sale consists of 391 units principally at Al Raha Beach and Reem Island.
Aldar’s stock on the Abu Dhabi Securities Exchange yesterday closed 0.82 per cent higher at Dh1.22.
Aldar’s portfolio of projects in the emirate of Abu Dhabi is valued at more than $75 billion with the entire inventory slated to be completed at delivered within this decade.