Aldar reports Q1 net profit of Dh478.2m

Aldar Properties PJSC (the Company), Abu Dhabi's leading property development investment and management company, announced its financial results for the first quarter ended 31 March, 2012, reporting a net profit of Dh478.2 million compared to Dh189.1 million for the same period last year.

Revenue for the quarter increased to Dh3.589.1 billion (Q1 2011: Dh784.7 million).

The company recognised Dh3.229 billion (Q1 2011: Dh470.9 million) from the sale of land plots and completed residential units and development management fees, of which Dh2.2 billion was related to sale contracts signed in 2011 with the Government of Abu Dhabi and related entities.

Recurring revenues for the period amounted to Dh360.1 million, up 14.8% from Dh313.7 million for the first quarter 2011.

This increase was primarily due to improved performance in Aldar's operational businesses, which include schools and hotels, which generated revenues of Dh148.6 million (Q1 2011: Dh137.9 million).

Rental income from investment properties, which include Aldar's commercial office and retail portfolio, increased to Dh150.8 million (Q1 2011: Dh123.3 million).

Aldar ended the period with a total cash and bank balance of Dh5.8 billion (31st December 2011: Dh4.2 billion).

Aldar successfully signed a Dh4 billion revolving credit facility with National Bank of Abu Dhabi at competitive rates.

The facility, which has a tenor of three years and remained undrawn at the quarter end, will be used for general purposes in support of Aldar's normal course of business activities and will allow the Company to optimally manage its working capital and liquidity requirements over the next three years.

From an operational perspective, the period saw the delivery and handover of residential units and land, continued construction progress for the company's owned and managed development activities and improved performance from operational businesses.

Aldar handed over 606 residential units at Al Raha Beach, of which 425 were to third parties and seven at Al Gurm, the private luxury residential resort during the first quarter.

The Company also handed over plots of land to the Government of Abu Dhabi and related entities at Al Raha Beach as part of the agreement announced in January 2011, with further plots to be transferred as infrastructure is developed and finalised.

Further unit handovers as part of the Government sales agreements signed in 2011 are expected to take place over the course of 2012.

At Yas Mall, Aldar's 235,000 SQM retail development on Yas Island, contractors have been mobilised and are now on site.

Piling works are continuing and the installation of underground services has commenced.

Set to be Abu Dhabi's largest mall, the project remains on schedule for delivery in Q4 2013 and pre-leasing is over 50% with over 18 months to completion.

Also on Yas Island, Aldar handed over the 5,443 SQM Ace Hardware store to the tenant Al Futtaim for fit-out, seven weeks ahead of scheduled delivery.

The store is set to open this summer joining the Middle East flagship IKEA store which opened in 2011.

Significant progress was made at Al Bateen Park, a new residential development at the heart of Abu Dhabi Island.

The project, which is made up of 284 apartments and 75 villas and townhouses, is already over 90% pre-sold and remains on its original delivery schedule of Q4 2012.

The first quarter saw significant progress at Al Falah, the 12.5 million SQM master planned development located to the east of the Abu Dhabi International Airport and the Abu Dhabi-Dubai Highway which will provide 4,857 homes for middle-income UAE families.

Construction of the first phase of the project, which includes 1,000 villas, is nearing completion and hand over to the relevant authorities will take place in the second quarter.

Yas Waterworld Abu Dhabi, the water park with 43 rides and attractions has seen significant structural progress during the period.

Situated next to the Ferrari World Abu Dhabi, Yas Waterworld Abu Dhabi will be delivered in the fourth quarter of 2012.

Aldar's investment properties saw maturing revenues contributing to quarter on quarter growth as the Company enjoyed the annualised benefit of new assets such as IKEA Yas Island and retail at established developments such as Al Bandar and Al Raha Gardens.

Aldar's operational businesses also performed well during the first quarter.

Aldar's hotel portfolio which includes seven on Yas Island showed robust occupancy levels in a soft pricing market as the leisure and entertainment destination continues to develop.

These efforts were further boosted by the news that Yas Links was selected as the 24th best golf course in the world outside America by Golf Digest, one of the world's leading golf publications, after only two years of operation.

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