Abu Dhabi’s largest listed developer Aldar Properties has reported a near tripling of first quarter profits as the company benefitted from asset sales to the Abu Dhabi Government, its merger with rival Sorouh and the completion of a number of its delayed projects.
Net profits for the first three months of 2014 stood at Dh453 million the company reported this morning, an increase of 194 per cent compared with the same period a year ago.
The profits came on the back of revenues of Dh1.7 billion – a 6 per cent increase on the previous year.
Aldar attributed the profits surge to its ongoing programme of infrastructure and housing sales to the Abu Dhabi government. The company said that the government had paid it Dh3.5bn in contractual payments over the period, allowing it to repay Dh2.8bn of company loans.
It also reported a 22 per cent increase in recurring revenues to Dh497m from its hospitality and investment portfolio following its merger with Sorouh last summer and from an upswing in the Abu Dhabi residential leasing market. Aldar reported that it had leased 63 per cent of its 1,537 flats at its Al Rayyana scheme on Abu Dhabi mainland.
And Aldar said that its bottom line had benefitted from an increase in the number of property handovers and sales it had completed. The company reported that it had now handed over 814 units at the 3,533 apartment Gate Towers development and 371 of the 375 flats in its Tala Tower scheme, both of which are located on Reem Island.
The company added that it had sold more than half of the available inventory at its 2,130-unit Al Ghadeer development in the Eastern Region of Abu Dhabi during the first quarter.
Aldar reported that its National Housing projects at Al Sila’a in the Western Region, Al Ghuraibah in Al Ain, as well as Al Watani, Al Falah and Raha Gardens in Abu Dhabi have been substantially completed and have received building completion certificates.
“We are seeing impressive sales and leasing activity, debt has been reduced by the repayment of Dh2.8bn in loans and we are on track to meet synergy savings for the merger,” the Aldar chairman Abubaker Seddiq Al Khoori said.
“In April, we embarked on the next phase of Aldar’s development story with the launch of three new developments with a combined gross development value of approximately Dh5bn. We are also assessing 20 other development projects as we look to monetise Aldar’s extensive land bank and continue to create value for our shareholders.”
The company added that occupancy rates at its hotels on Abu Dhabi’s Yas Island and the Tilal Liwa Hotel in the Western region increased to 84 per cent in the first three months of 2014 from 82 per cent during the same period in 2013.
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