Abu Dhabi: Aldar Properties PJSC, today announced strong financial results for the third quarter of 2012 with revenue for the period of AED 1,604.5million (Q3 2011: AED 3,132.9 million) and net profit of AED 205.7 million up 43 per cent from AED 144.0 million during the same period last year.
Revenues were driven mainly by the delivery and handover of 132 residential units, and 25 land plots at Al Raha Beach.
The Company continues to have strong on-going revenue and cash flow visibility with AED 12.0 billion cash still to be received, and AED 2.6 billion of revenue still to be recognised from land sales at Al Raha Beach, following the three main asset sale agreements signed with the Government of Abu Dhabi between 2009 and 2011.
Recurring revenues from investment properties and operating businesses were up 8% to AED 306.0 million in the third quarter (Q3 2011: AED 282.9 million) and broke through the AED 1.0 billion mark over the first nine months of the year. These were driven by increased occupancy year-on-year from the office portfolio, notably HQ, and maturing retail operations, in particular Gardens Plaza and IKEA. We are delighted to announce that outline heads of terms have been agreed through a joint venture with Etihad Airways to purchase the 17,700sqm Al Noor building at Al Raha Beach, which is to be leased on a long-term basis to Etihad Airways.
Aldar has ample working capital and liquidity to deliver on its business plan. At the end of the period, free cash balances were AED 888.2 million, in addition to available and undrawn liquidity of AED 3.2 billion through revolving credit facility agreed earlier in the year.
The Company’s on-going programme of debt reduction followed a normal schedule of repayments during the quarter with AED 63.4 million repaid. A further AED 309.4 million will be retired on schedule in Q4. Aldar’s total borrowings stood at AED 14,429.3 million compared to AED 18,295.5 million as of 31 December 2011.
As a result of the recent detailed valuation exercise relating to the potential merger with Sorouh Real Estate PJSC, the Company has updated the valuation of certain of its assets to reflect current conditions. The Company has therefore elected to write down the value of its assets by a net amount of AED 737.1 million reflecting principally impairments to its hotel assets that are partially offset by fair value gains on Yas Mall. As a further result of the valuation exercise, the Company has written back AED 431.5 million of excess accruals and recoverable costs, which had been written off in previous periods.
Ali Eid Al Mheiri, Chairman of Aldar Properties commented: “We are pleased to see Aldar’s communities are starting to thrive as more customers occupy our developments. We are proud of our contribution to Abu Dhabi’s ongoing growth and that our established delivery record continues to produce stable cash-flows and profits for our shareholders. We have moved from strength to strength – both financially and operationally – and remain well positioned to execute our business plan and confirm our position as Abu Dhabi’s premier developer.