Dubai: Abu Dhabi developer Aldar Properties reported a Dh189.1 million net profits for the first quarter of 2011, compared to a Dh314.2 million net loss in the corresponding period last year.
Revenue grew 245 per cent to Dh784.7 million, up from Dh227 million, driven by the sales of completed properties at Al Gurm and Al Bandar and growing income from operational businesses.
The company's net assets were up 5.8 per cent in the first quarter of 2011 compared to December 31, 2010.
The majority of the revenues, or Dh433.3 million came from the delivery of completed units at the Al Gurm and Al Bandar residential communities, whilst Dh191.7 million was delivered from the performance of operational assets including the seven Yas Island hotels and its Aldar Academies schools across Abu Dhabi.
Ali Eid Al Muhairi, the new chairman of Aldar Properties, said: "This improved operational performance is a positive step, and the entire business is fully focused on delivering sustained returns to all of its shareholders by concentrating on our core business, prioritising current projects and managing cashflow."
Rental income on investment properties generated Dh93.1 million and Dh66.6 million was generated from the group's project management and asset management services. Net asset value increased by 5.8 per cent in the first quarter of 2011 compared to Dec-ember 31, 2010.
Jessey Downs, director of Jones Lang LaSalle, Mena, said, "It shows that financial re-engineering has allowed them to focus on the most profitable side of the business. When you focus on the financial restructuring from a holistic point, it is amazing how fast the results could be."
During the period, the group recognised the sale of Ferrari World Abu Dhabi and related assets to Abu Dhabi and also issued mandatory convertible bonds with a total value of Dh2.8 billion to Mubadala Development Company. As a result, the company ended the quarter with Dh6.15 billion in cash and bank balances, an increase of Dh3.72 billion compared to December 31, 2010.
Tarek Ramadan, a Dubai-based property analyst, told Gulf News, "It is definitly a positive news and reflects that the worst for them is over. The delivery of the completed projects will help boost its performance in the next few quarters, especially after the recapitalisation by Abu Dhabi."
