Aldar Properties PJSC, Abu Dhabi's leading property development, investment and management company, yesterday announced 2008 full year financial results, and reported a 77.5 per cent increase in net income to Dh3.4 billion compared to Dh1.9bn in 2007.
Net asset value was up 108.5 per cent to Dh16bn.
Net operating income was Dh2.2bn compared to Dh120.1 million the previous year; gross revenue rose by 335.7 per cent to Dh5.3bn compared to Dh1.2bn.
Further revenue of Dh6.4bn was met through sales of properties under construction, which will be recognised in future periods.
This performance, primarily driven by increased sales revenue (sale of plots of land and residential units), proves the resilience and sustainability of Aldar's business model, which in 2008 entered a new phase of its evolution, focused on execution and delivery backed by a solid balance sheet.
Ahmed Ali Al Sayegh, chairman of the board of directors of Aldar, said: "The year 2008 was a transformational one for Aldar and the results we announce today reflect the success of our business model and the hard work that has been put into all our developments since the formation of the company in 2005. This year will be a challenging year but Aldar is well positioned to meet these new challenges and we are responding to the current environment in a prudent and appropriate manner. We are committed to delivering projects under way and will proceed in a focused and measured fashion with future developments.
"We are cautiously optimistic about the year ahead and are confident we will meet our long-term strategic and financial objectives and contribute to the success of Abu Dhabi Economic Vision 2030 plan and pursue our goal to build sustainable communities in Abu Dhabi."
Developments under construction increased in value by 175.3 per cent to Dh22.9bn from Dh8.3bn at end 2007 as a result of investment in existing and new development projects such as Al Falah, part of the Abu Dhabi Government's housing initiative, which very much corresponds to Aldar's mission to build sustainable communities; and Motor World, which will create a one-stop shop for automotive related activities and commerce.
A number of projects have been completed and handed over. These include the Yasmina School, which marks a further step in Aldar's ambition to make world-class education available to Abu Dhabi's growing young population and 444 villas in the Al Raha Gardens phase II.
Work and investment continued at pace on projects such as Al Raha Beach, the first parts of which will be delivered later in 2009, and Yas Island, where the Yas Marina Circuit and related facilities, including hotels and marinas, are nearing completion and are on track for the November 1 Formula 1 Etihad Abu Dhabi Grand Prix. The rise in general and administrative expenses from Dh279.6 million in 2007 to Dh771.2 million in 2008 was due to a focused hiring effort to meet the demands of the growing business, with staff numbers rising from 378 to 800 at year-end 2008.