Aldar net rises 67% to Dh2.25bn
Aldar Properties, Abu Dhabi's listed property development, investment and management company, reported on Wednesday that net profit increased by 67 per cent to Dh2.25 billion in 2013 compared from 2012.
Revenues for the full year was Dh5.38 billion. The company’s fourth quarter net profit stood at Dh427 million, rising 79 per cent from the same period in 2012.
The growth in net profit for the year was primarily driven by the impact of the acquisition of Sorouh as well as ongoing handovers of units at key residential developments, sales of residential units, the handover of infrastructure as part of a transaction with the Abu Dhabi government announced in 2013, and higher recurring revenues from the Company’s hospitality and investment property portfolio.
Aldar Properties recorded a one-off gain on the acquisition of the net assets of Sorouh Real Estate following the merger between the two companies.
Commenting on the results, Abubaker Seddiq Al Khoori, Chairman of Aldar Properties, said: “We have moved quickly to build a platform for sustainable growth having completed our merger integration earlier than planned. We have strengthened our financial position, enhanced our capital structure and made progress balancing our business between development and recurring revenues.
“We are seeing strong growth in the Abu Dhabi economy and Aldar will continue to play an integral role building communities and attractions that meet the lifestyle demands of both residents and visitors alike. We are currently working on new development projects from our extensive land bank that will lead us into a new phase of profit growth that will drive shareholder value.”
Recurring revenue grew 27 per cent to Dh1.83 billion over 2013, largely due to the combination of Aldar and Sorouh investment properties on merger.
Residential leasing activity picked up strongly at the end of 2013 at newly completed projects, including the Gate Towers and Al Rayyana, while the Company’s residential portfolio comprising leased assets at Sas Al Nakhl, Khalidiya Village, Al Raha Beach, Sun and Sky and Al Murjan Tower were almost fully leased.
Yas Mall, which is scheduled to open in November 2014, is set to transform the retail landscape in Abu Dhabi.
Revenues from the hospitality portfolio, which includes seven hotels on Abu Dhabi’s Yas Island and now the Tilal Liwa Hotel in the Western region of the emirate, increased 21 per cent to Dh504 million.
Full Year occupancy rates on hotels increased to 77 per cent in 2013, from 65 per cent in 2012.
Real Estate development revenues were driven by the completion of key projects, in particular the Gate Towers, where 199 units were handed over during Q4 2013, as well as our ongoing programme of land and infrastructure deliveries to the Government.
Aldar also substantially completed several National Housing projects, which generate revenue for Aldar, including Al Sila’a in the Western Region, Al Ghuraibah in Al Ain, and Al Watani, Al Raha Gardens and Al Falah in Abu Dhabi. Our project management fee based pipeline is set to develop further with an increase in activity at Abu Dhabi Plaza in Astana, Kazakhstan that we are developing on behalf of the Government of Abu Dhabi as well as the Zone K residential project on Yas Island.
As of 31 December 2013, total assets were Dh43.7 billion and gearing (net debt to equity) was 58 per cent, compared to 144 per cent a year earlier. Aldar continues to maintain a strong cash position with Dh8.3 billion of cash and available liquidity at the end of the year.
Aldar is planning a number of new developments, including up to 1,000 units on Abu Dhabi Island, Yas Island and Al Raha Beach which will be developed in a phased approach and launching in first half of 2014 in line with market demand.
Following completion of the merger between Aldar Properties and Sorouh Real Estate, the two businesses are now fully integrated. Systems and processes are now aligned and all re-branding activity has been completed.
The company is well on track to exceed it’s per annum synergy estimate of Dh90-110 million.
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