Aldar's net profit falls 43.78% to Dh427m

Abu Dhabi: Abu Dhabi-based real estate developer Aldar Properties' net profit fell 43.78 per cent on year to Dh427 million in the fiscal third quarter that ended in September, a top company executive said.

Gross revenues fell to Dh640 million from Dh920.35 million a year earlier, Shafqat Malek, Aldar's chief financial officer, said.

"The revenue in the third quarter came from property sales, land sales and rent. We are starting to see markets opening up in terms of business activity, in terms of sales and leasing."

He said Aldar sold land worth Dh102 million in the fiscal third quarter. There was no land sale during the first six months.

Aldar said in a statement it reported a net profit of Dh1.57 billion for the first nine months of 2009 with gross revenue of Dh1.74 billion. "Developments under construction increased significantly by 58.1 per cent compared to end-2008 to Dh36.26 million."

Total net asset value stood at Dh17.22 billion, up 7.4 per cent in the first nine months of the year.

"Financing has increased over the period in line with the funding requirements and in the last quarter Aldar successfully secured a further Dh2.6 million. Under the current market conditions Aldar's success in raising adequate financing for its projects clearly illustrates investors' ongoing confidence in the company and its long term business model," Aldar said, adding that at the end of September 2009, Aldar held Dh11.03 million in cash and bank balances.

Aldar shares on the Abu Dhabi Securities Exchange ended 0.01 per cent higher on Tuesday, at Dh6.31.

Aldar is Abu Dhabi's largest real estate developer by market capitalisation.

Its development of real estate projects across its portfolio in the emirate of Abu Dhabi is estimated to have exceeded $72 billion (Dh264.37 billion).