Abu Dhabi: Aldar Properties, Abu Dhabi’s largest developer by market value, recorded a 109 per cent increase in full-year net profit to Dh1.34 billion compared to Dh642.5 million in 2011 on the back of increased sales, it said on Sunday.
Revenue for the year rose 69 per cent to Dh11.4 billion from 6.74 billion in 2011, the developer said in a statement on the Abu Dhabi bourse.
The company’s board of directors has recommended a cash dividend of 6 fils per share for shareholder approval at the Annual General Meeting, the statement said.
Aldar, which approved a merger with Sorouh Real Estate in January, ended the year with Dh2.26 billion in cash and bank balances. It also saw a 23 per cent reduction in total borrowing to Dh14 billion compared to Dh18.3 billion because of the repayment of loans.
The Group also signed a new Dh4 billion revolving credit facility, of which Dh800 million was drawn at the end of the year, it said.
“2012 has been a truly exception year for Aldar… Our shareholders will benefit from both the continued efforts of our employees to realise value from our sizeable asset base and from our proposed merger with Sorouh that will create a significantly stronger platform from which to drive sustainable growth,” said Ali Eid AlMheiri, Chairman of Aldar Properties.
Earnings per share reached Dh0.30 compared to Dh0.15 in 2011 as net profits increased, the company said.
The results are another piece of good news for the overall Abu Dhabi market, said William Neill, head of Cluttons Abu Dhabi.
Positive financial performance by some of the big developers are good signs for the market, Neill said.
Aldar’s provisions for impairments and write-offs totaled Dh936.1 million down from Dh2.49 billion in 2011.
Direct costs rose to Dh8.17 billion last year from Dh5 billion in 2011, according to the financial statement.
Profits for the year contributed to an increase in net assets of 15.3 per cent to Dh8,179.5 million compared to Dh 7,093.6 million in 2011. Aldar’s share prices closed on Monday down 4.17 per cent to Dh1.38.
Sorouh Real Estate said earlier its fiscal fourth quarter net profit rose 21 per cent on the year to Dh118.9 million while net income for full year 2012 rose to Dh507.5 million, up 32 per cent from 2011.