Aldar’s Q3 net profits rise 43% to Dh206m

Real estate developer Aldar Properties sold its land plots in the Raha Beach development, giving revenues which grew its third quarter earnings by 43 per cent to Dh206 million. However, the real estate firm showed 48 per cent year-on-year drop in revenues to Dh1.604.5 billion in the period down from Dh3.133 billion in the comparable period a year ago. In the quarter ended September 30, rise in revenues were driven mainly by the delivery and handover of 132 residential units, and 25 land plots at Al Raha Beach, the property developer said in a regulatory filing to Abu Dhabi Securities Exchange. The firm continues to have strong on-going revenue and cash flow visibility with Dh12.0 billion cash still to received, and Dh2.6 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 eight per cent to Dh306.0 million in the third quarter against Dh282.9 million in the same period last year and broke through the Dh1.0 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, the property developer said. Development revenues for the third quarter were Dh1.249.9 billion from Dh2.792 billion in the same last year, Dh2.792.3 billion based on the on-going delivery of land plots and units at Al Raha Beach to customers including the Government of Abu Dhabi. Aldar handed over 132 residential units to customers in the quarter, predominantly at Al Raha Beach. Additionally, 25 new units were sold at developments including Al Zeina, Al Muneera and Al Bateen Park. Remaining inventory available for sale consists of 372 units. Aldar confirmed agreeing to heads of terms through a joint venture with Etihad Airways to purchase the 17,700 sqm 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 Dh888.2 million, in addition to available and undrawn liquidity of Dh3.2 billion through revolving credit facility agreed earlier in the year.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 elected to write down the value of its assets by a net amount of Dh737.1 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 Dh431.5 million of excess accruals and recoverable costs, which had been written off in previous periods. Ali Eid Al Mheiri, chairman of Aldar Properties said handover of properties continues to “produce stable cash flows and profits”.   “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,” the chairman said.. The Village Retail development for the residents of Al Falah is on schedule for delivery in Q4 2012. The development comprises 116 retail units, of which 86 units are pre-leased. Tenant fit-out will begin in the beginning of 2013. Aldar delivered the second phase of 1,083 residential units at Al Falah Community, Abu Dhabi’s largest and most prestigious development of housing for UAE Nationals. More phased handovers will occur in the final quarter of 2012 at the prestigious 4,857-unit National Housing development. From KhaleejTimes