Aldar Q3 profit rises 41% to Dh584m

Abu Dhabi-listed property developer Aldar Properties has reported net profit of Dh584 million for the third quarter 2014, an increase of 41 per cent compared with Dh413m in Q3 2013, supported by growth in profitability of the recurring revenue assets and Yas Mall valuation following its completion.

Third quarter revenues were up 17 per cent to Dh1.37 billion as against Dh1.17bn in Q3 2013, primarily supported by the sale of B2 Tower, handover of units at Gate Towers and increased recurring revenue streams. Recurring revenue in the third quarter was Dh526m compared to Dh471m in Q3 2013, reflecting an increase of 12 per cent.

This increase was primarily driven by strong leasing activity during the period at Al Rayanna and The Gate Towers which are now fully let, one year ahead of schedule.

Sico Bahrain and HSBC had expected Aldar to make quarterly profit of Dh382.6m and Dh441.9m, respectively.

Revenue for the nine months to 30 September 2014 was Dh5.28bn. Net profit in the first nine months was Dh1.55bn.

As at September 30, 2014, total assets were Dh38.21bn while net debt to equity, excluding restricted cash, stood at 38 per cent.

Aldar continues to hold a strong cash position with Dh4.03bn of cash and bank balances at the end of the third quarter. Gross debt fell 5 per cent during the quarter to Dh9.57bn as at September 30, 2014.

“This has been a strong quarter that clearly demonstrates the effectiveness of our strategy. Our recurring revenue assets continue to grow, especially with Yas Mall coming on stream and we are well on our way to achieving our recurring income target. This will help smooth out bottom line earnings and underpin our business as we commence a new wave of development projects, which include those announced earlier in the year and a number to be launched over the coming quarters.”

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