Aldar's profit hits Dh478.2m

Abu Dhabi: Aldar Properties said yesterday its fiscal first quarter net profit jumped to Dh478.2 million from Dh189.1 million during the first three months of 2012.

Revenue rose to Dh3,589.1 million from Dh784.7 million in the corresponding quarter last year, Aldar said in a statement to the Abu Dhabi Securities Exchange (ADX), where its shares are listed.

The share market was closed yesterday for the weekend.

"The company recognised Dh3,229 million from the sale of land plots and completed residential units and development management fees, of which Dh2.2 billion was related to sale contracts signed in 2011 with the Government of Abu Dhabi and related entities," said Aldar.

It said at the end of March its total cash and bank balance had risen to Dh5.8 billion from Dh4.2 billion at the end of Dec-ember 2011.

"Aldar's financial strength is clearly evident in these results for the first quarter of the 2012 financial year. Building on the solid financial foundations that were created in 2011, these results reflect the significant deliveries of residential units and land plots at Al Raha Beach that began in the quarter and will continue through the year, supported by strong recurring revenues from our operating businesses," said Ali Eid Al Mheiri, chairman of Aldar.

Better position

Marwan Shurrab, vice-president of Dubai-based GulfMena Investments, recently told Gulf News that Aldar is in a much better financial situation now than in 2011 after asset purchases in Aldar towards the end of last year by the Abu Dhabi government.

From an operational perspective, the three-month period saw the delivery and handover of residential units and land, continued construction progress for Aldar's owned and managed development activities and improved performance from operational businesses.

Handed over

Aldar handed over 606 residential units at Al Raha Beach, of which 425 were to third parties, and seven at Al Gurm, the private luxury residential resort, during the first quarter.

The company also handed over plots of land to the Government of Abu Dhabi and related entities at Al Raha Beach as part of the agreement announced in January 2011, with further plots to be transferred as infrastructure is developed and finalised.

"Further unit handovers as part of the government sales agreements signed in 2011 are expected to take place over the course of 2012," said Aldar.

In December, the Abu Dhabi government came to the rescue of Aldar with a Dh16.8 billion lifeline in exchange for strategic assets.

In January 2011 the developer agreed to sell real estate assets, including the Ferrari theme park, and convertible bonds to the government for Dh19.2 billion to reduce its debt.

Aldar's portfolio of projects in Abu Dhabi is valued at more than $75 billion (Dh275.40 billion), with the entire inventory slated to be completed and delivered within this decade.