Aldar Properties Q3 revenue drops

Aldar Properties PJSC on Thursday announced its financial results for the third quarter period ending September 30, 2013, with a total revenue of Dh1.17 billion.

Aldar, an Abu Dhabi listed property development, investment and management company, earned revenue of Dh1.6 billion for the same period last year. 

"Development revenues were generated from the sale of a Yas Island land plot, the on-going handover of serviced land at Al Raha Beach East, handovers of residential units at Tala Tower, revenues from fee based developments and construction revenues. Overall revenues in the comparable period last year were boosted by significant handovers of land plots and residential units at Al Raha Beach," the company statement said on Thursday, releasing the third quarter financial results.

Third quarter recurring revenues were up 54 per cent quarter-on-quarter to Dh471 million. Recurring revenue growth was driven by the expansion of the investment property portfolio that now benefits from a full quarter of revenue contribution from Sorouh’s assets.

Overall, Aldar reported a third quarter net profit to equity holders of Dh407.5 million, up 98 per cent (Q3 2012: Dh205.7m). 

Revenues for the nine months to September 30, 2013 were Dh4.1 billion (9M 2012: Dh9.8 billion) and net profit was Dh1.8 billion (9M 2012: Dh1.1 billion). This includes a one-time gain on the acquisition of Sorouh’s assets, offset by certain asset impairments in the second quarter.

At the period end, total assets were Dh44.8 billion and gearing (net debt-to-equity) was 54 per cent (FY 2012: 144 per cent ). Aldar continues to have a strong cash position with Dh6.3 billion of cash and available liquidity at the end of the third quarter.

In recent weeks, both Moody’s and Standard & Poor’s (S&P) significantly upgraded their ratings for the Company.  Moody’s moved Aldar three points from B1 to Ba1 with a positive outlook. This was on top of the one point upgrade in July. S&P raised Aldar to BB, a two point upgrade.

As part of Aldar’s planned debt reduction and refinancing programme, the company announced two bank financings totalling Dh4.0 billion at an average margin of 1.3 per cent  above base rate and an average maturity of three and half years.

These facilities are undrawn at this time and will be used for refinancing purposes. This follows a successful margin reduction on a Dh2.1 billion syndicated loan during the second quarter. 

Abubaker Seddiq Al Khoori, Chairman of Aldar Properties, said, "This is the first full quarter of combined operations. The business continues to deliver excellent results and substantial growth in recurring revenues. Our commitment to de-leveraging the balance sheet and reducing the cost of borrowing is delivering real value.

“We are now seeing greater stability as market fundamentals continue to improve. Aldar will benefit from this trend and the solid growth fundamentals of the Abu Dhabi economy as it hands over more than 7,000 units to customers over the next 12 months," he added.



 

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