Aldar Properties Q4 net profit AED718m, up 77%

ABU DHABI, 12th February 12 2015 (WAM) – Aldar Properties PJSC, Abu Dhabi’s leading listed property development, investment and management company, today issues its financial results for the 12 month period ended 31 December 2014.

Mohammed Khalifa Al Mubarak, Chief Executive Officer of Aldar Properties, commented: “2014 has been an exceptional year for Aldar. We have executed successfully against a clear strategy and 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. Over the year we opened our flagship retail asset, Yas Mall, and delivered over 7,000 residential units to our customers and asset management portfolio.

We have a development plan with the potential to launch 7,300 units across our existing destinations over the next 4 to 5 years. Our focus remains on bringing high quality real estate products to our customers in line with market demand and increasing our shareholder value.

Given Aldar’s strong performance in 2014, I’m pleased to announce that the Board has recommended a 29% increase in the dividend to 9 fils per share.” In the fourth quarter, recurring revenue increased by 19% to AED 701 million versus AED 591 million in the same period 2013. Full-year recurring revenues increased 23% to AED 2.25 billion, largely driven by the expanded recurring revenue base and the improved performance of key assets.

Yas Mall, Aldar’s flagship retail asset, opened in November 2014 to fill a gap in the market. Yas Mall has become the anchor destination on Yas Island, and has proved immensely popular with the local community and visitors to Abu Dhabi, complementing the seven hotels on Yas, the race track, waterpark, concert arena, marina, links golf course, other destination shops such as IKEA and Ferrari World theme park. The mall is fully leased as at 31 December 2014.

Robust capital structure Aldar has a clear debt strategy in place to reduce the cost of borrowing, extend the maturity profile and lower debt. In Q4 2014, Aldar reduced gross debt from AED 9.57 billion to AED 9.17 billion, resulting in a 33% debt reduction year on year. In Q4 2014, Aldar saw significant ratings upgrades, with Moody’s and Standard and Poor’s upgrading the Company and issued debt to investment grade reflecting the improved financial position and solid financials. Aldar completed a comprehensive refinancing programme in 2014, enabling a reduction in the weighted average interest rate on debt to 2.7% as at 31 December 2014. Cash flow visibility remains strong with AED 5.7 billion of receivables and infrastructure recoverable due from the Government of Abu Dhabi.

Fourth-quarter net profit was AED 718 million, a rise of 77% from the same period in 2013 driven by the growth in our recurring revenues and fair value gains on investment properties.

Net profit for the year was AED 2.27 billion, 2% ahead of 2013, primarily supported by growth in recurring revenue assets profitability and fair value gains on investment properties. Revenues for the full year totalled AED 6.55 billion, an increase of 22% driven by unit handovers and growth of recurring revenues.

Al Hadeel and Ansam, the first off-plan sales into Abu Dhabi for four years were successfully launched into the market in Q2 2014 and are set to handover in 2017.

The Board of Directors recommends a cash dividend of 9 fils per share, up 29% from 2013.