Dubai: Aldar Properties, the Abu Dhabi-listed real estate developer, reported an increase in second quarter net profits on Sunday after adjusting one-time gains from its merger with Sorouh a year earlier.
Abu Dhabi’s largest real estate developer made Dh506 million ($137.7 million) for the quarter, up 168 per cent on the Dh189 million from the corresponding period a year earlier.
The year earlier figure did not include the Dh1.063 billion gain from last year’s merger with Sorouh Real Estate.
Aldar said second quarter growth was largely due to the “continued handover of units” at the Gate Towers and “strong growth in residential leasing revenues”.
Gate Towers is a mixed-use development on Al Reem Island in Abu Dhabi.
“The operational achievements during the quarter have been particularly impressive with sales and leasing activity at an all-time high, as our residential properties continue to benefit from a flight to quality,” Aldar Properties chief executive Mohammad Khalifa Al Mubarak said in statement.
Cut borrowing costs
Revenues for the second quarter were Dh2194 million, up 74 per cent on the year earlier, while recurring revenues rose by 45 per cent to Dh526 million compared to the same period. Aldar said the rise in recurring was due driven primarily by faster than expected lease up at the Al Rayyana development.
Aldar cut its borrowing costs in the second quarter by replacing Dh1.6 billion of existing bank loans with new loans that have a lower cost and longer maturities, the developer said. Aldar also repaid a $1.25 billion bond due in May 2014 with a mix of internal cash and Dh4 billion in undrawn bank facilities.
Since the merger with Sorouh last year, Aldar said it has cut its gross debt from Dh14.2 billion to Dh10 billion. By the end of the second quarter, Aldar had Dh3.9 billion in cash.
Aldar shares were down 2.12 per cent to Dh3.69 at midday trade on the Abu Dhabi Securities Exchange (ADX) on Sunday.
