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- Dubai 05:26 06:39 12:34 15:52 18:24 19:37
Abu Dhabi’'s Aldar Properties reported a 61 per cent rise in fourth-quarter net profit on Thursday, beating analyst forecast as recurring revenue increased and the developer made fair value gains on investment properties.
The state-run builder of Abu Dhabi's Formula One circuit made a profit attributable to shareholders of Dh696.3 million ($189.6 million) in the three months to December 31, according to Reuters calculations based on a company statement.
This compares with a profit of Dh432.6 million in the corresponding period of 2013.
Sico Bahrain forecast Aldar would make a quarterly profit of Dh462.4 million.
“We have ... delivered on our promises of strengthening our balance sheet, monetising our land bank and growing our recurring revenues, thereby improving the quality of our earnings,” Aldar chief executive Mohammed Khalifa Al Mubarak said in a company statement to Abu Dhabi's bourse.
"We have a development plan with the potential to launch 7,300 units across our existing destinations over the next 4-5 years."
Aldar has proposed a dividend of Dh0.09 per share for 2014, up from Dh0.07 for 2013.
The firm's fourth-quarter recurring revenue rose 19 percent to Dh701 million. In November, it opened Yas Mall on Abu Dhabi's Yas Island, which features the Formula One track and other tourist attractions. The mall was fully leased by the end of 2014.
It also made a fair value gain of Dh177.2 million on investment properties in the fourth quarter, up from a fair value loss of Dh27.6 million in the prior-year period, according to Reuters calculations.
Abu Dhabi's government owes Aldar Dh5.7 billion in receivables and infrastructure, the company said.
Fourth-quarter revenue at the firm, which merged with rival Abu Dhabi developer Sorouh Real Estate in June 2013, was Dh1.37 billion. This was up from Dh1.33 billion a year earlier, according to Reuters calculations.
The company's annual profit was Dh2.24 billion in 2014. This compares with a profit of Dh2.25 billion in 2013.
Aldar's net debt was Dh9.57 billion at the end of 2014, down by a third from a year earlier.
State-owned fund Mubadala Development Co. owns 30 percent of Aldar, Reuters data shows.
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