AA Properties Dubai Real Estate Broker

Dubai Abu Dhabi’s biggest property developer Aldar Properties PJSC reported a net profit of Dh642.5 million last year compared to a loss of Dh12.658 billion for same period last year.

This has led to an earnings per share of Dh0.15 compared to a loss per share of Dh4.39 for the previous year.

Revenue for the year increased to Dh6,742 billion compared to Dh1.791 billion for the year 2010. The company recognised Dh5.43 billion (2010: AED 905.4 million) from the sale of land plots and completed residential units and project management fees. The increase was primarily due to revenue from land sales to the Government supplemented by increased sales of residential units.

Recurring revenues increased by 48 per cent to Dh1.307 billion (2010: Dh885.7 million). Rental income from investment properties, which include Aldar’s commercial office and retail portfolio, increased to Dh540.9 million (2010: Dh325.0 million) and operational businesses such as schools and hotels generated Dh766.5 million (2010: Dh560.7 million).

The company has also written down the value of certain assets in line with prevailing market values and upon further business reviews undertaken over the course of the year. Accordingly, appropriate impairments, provisions and fair value losses of Dh3.030 billion were recognised during the year.

Aldar ended the year with Dh4,157.7 million in cash and bank balances (2010: Dh2.431 billion) and a net reduction in total borrowing of Dh14.319 billion.

Net assets increased by 67 per cent to Dh7.093 billion compared to Dh4.246 billion at 31 December 2010. The increase is contributed principally by the profit for the year and the conversion of Dh2.10 billion of the Dh2.800 billion convertible bond issued to Mubadala Development Company during 2011.

In light of these results, the Board of Directors have recommended a cash dividend of Dh0.05 per share for shareholder approval at the AGM.

During the year, Aldar completed 1,930 residential units including the Al Zeina and Al Muneera communities at Al Raha Beach, one of the first new beachfront residential developments in Abu Dhabi, and the first phase of Al Gurm, a luxury residential development.

The completion of Al Bateen Park, a residential unit development in the heart of Abu Dhabi and Al Ward, a precinct within the Al Raha Gardens community, is anticipated in 2012.

The fee-based development portfolio grew with the signing of new development management contracts for Abu Dhabi Plaza Kazakhstan, Yas Island Waterpark and a construction management agreement for Central Market.

These join existing contracts for Al Falah, a 4,857 villa Emirati Housing development for the Abu Dhabi Government, Cleveland Clinic Abu Dhabi, an Dh1.9 billion healthcare facility for Mubadala and the Masdar Institute of Science and Technology.

A range of properties held for investment were also completed and fully let in 2011 adding 76,000 square metres of new retail, including IKEA development on Yas Island, Gardens Plaza and Motor World, a custom-designed destination for new and used car showrooms and servicing facilities in Abu Dhabi.

The construction contract was awarded for Yas Mall, a major retail development on Yas Island. With 235,000 square metres of retail trading area, Aldar has already leased over 40 per cent of this development that will open in the fourth quarter of 2013.

In 2011, Aldar Academies delivered three new schools - Al Bateen Secondary School, Al Mushrif School and Al Ain International School. Aldar Academies now operates six schools with capacity for approximately 5,500 pupils in Abu Dhabi and Al Ain.

Commenting on the results, Ali Eid AlMheiri, Chairman of Aldar Properties, said: “In 2011, Aldar delivered major milestones from its development activities. We also undertook a number of financial initiatives to return Aldar to long term growth and ensure ongoing value creation for all our stakeholders. We are entering 2012 in a stronger financial position with lower debt levels and stable cash flows. We are a more efficient organization that is well positioned to capitalise on market opportunities and drive shareholders returns by deploying capital selectively into key projects.”