Abu Dhabi: Aldar Properties, Abu Dhabi’s largest real estate developer by market capitalisation said yesterday its fiscal second quarter net profit rose 200 per cent on year to Dh1.25 billion, while the net income for the first half this year rose to Dh1.41 billion, a rise of 57 per cent, year-on-year.
“The profit for the quarter was principally driven by the handover of land plots and residential units, steady growth from recurring revenue assets and a one-time gain on the acquisition of Sorouh’s assets offset by certain asset impairments,” Aldar said in a statement, adding its total assets grew 36 per cent to Dh43.7 billion owing to the merger with Sorouh.
“Aldar is well-positioned to capitalise on the solid growth fundamentals of the Abu Dhabi economy. We will be handing over more than 7,400 units to customers over the next 12 months. This strong pipeline, supported by our steadily growing recurring revenues, leaves us well placed to generate sustainable returns for our shareholders,” commented Abu Bakr Seddiq Al Khoury. Aldar Properties’ chairman in the statement.
The property developer said revenues of Dh1.26 billion during the second quarter were generated from the on-going handover of serviced land at Al Raha Beach East, the start of residential unit handovers at Tala Tower, revenues from national housing projects and recurring income from the investment properties portfolio.
Aldar’s revenues in the first-half of the year amounted to Dh2.89 billion, which were less than the Dh8.22 billion in the corresponding period last year as the company handed over 479 units in the first half of 2013 compared to 1,058 units in the first half of 2012.
Reacting to Aldar’s financial performance, Haissam Arabi, a Dubai-based independent market analyst told Gulf News by telephone: “Aldar is in a much stronger position financially following its merger with Sorouh. With the real estate sector recovery picking up in the UAE, Aldar’s stock would be among the top picks for a fund manager having an exposure to the UAE.”
He added: “Post-merger, Aldar has the largest land bank in Abu Dhabi and it will benefit from the recovery in the real estate sector as well as from external factors like people relocating from the neighbouring Arab countries and buying property here.”
Aldar said following the merger completion with Sorouh Real Estate in the fiscal second quarter this year, “good progress is being made on the integration of the two businesses, which is on track to be substantially complete by year end.”
It added: “Significant financial synergies have already been achieved, including an interest margin reduction of over 2 per cent per annum on the loan facility entered into on 28 June, 2010 between Sorouh and a syndicate of banks, which has an outstanding balance of Dh2.1 billion.”
Providing an update of its various projects, Aldar said the first phase of the 2,130-unit Alghadeer development in the eastern region of Abu Dhabi is now ready to be handed over to owners. At the Al Rayyana development, Aldar said tenants will be able to move into the development in the coming months. At World Trade Center Abu Dhabi, managed by Aldar, final preparations are being made for the opening of The Mall by the end of this year.
As well, Aldar said the handover has started on 577 units in two towers on Al Reem Island. Tala Tower, the 375 apartment residential tower, was 70 per cent handed over to owners during the second quarter. “We also expect handover of a further 202 units in the tower adjacent to Tala Tower in Q3,” it added.