Aldar posts AED789m loss as income halves for 2010

The company is expecting an upturn in revenue through second-half completions.

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Aldar Properties, the Abu Dhabi developer, posted a loss of AED789.5 million for the first six months of 2010 having seen its revenues more than half against the same period last year.

The company, whose developments include Yas Island and Al Raha Beach in the UAE’s biggest emirate, announced the results last Thursday to the Abu Dhabi bourse. It reported an increase to its investment in projects under construction since the end of last year, from AED17.9 billion to AED 21.2 billion and has apparently secured more than AED1.5 billion of additional financing.

Revenue for the last six months was AED427 million, down from just over a billion for the same period last year as the company anticipates as stream of income from the ongoing development of its premium sites in the UAE capital.

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“The decrease was principally due to lower property sales recognised,” the company told shareholders. “However, recurring revenues from operating businesses are showing continuous growth as these areas of the company mature.

“The second half of this financial year is expected to be different due to the revenue generated from the delivery of Aldar's projects at Al Raha Beach and Al Gurm,” it added, citing the new financing as proof of the company’s strength.

Among its upcoming completions are the opening of the Souk at Central Market; the delivery of the Al Bandar residential development to customers; new tenants into the Al Raha Beach office space HQ; and the opening of Ferrari World Abu Dhabi – the latter to be previewed in Construction Week prior to launch later this year.

Ahmed Al Sayegh, Aldar Properties chairman, said: "With the ongoing impact of the difficult global economic situation, this has been a very challenging first half of the year for the entire sector.

“However, whilst recovery remains fragile in many parts of the world, Aldar is well positioned to benefit from the improved conditions expected in the second half of the year.”

Late last month Emaar Properties, a Dubai-based rival, posted net profits of AED802 million for the second quarter, part of the AED1.656 billion in net profits for the year so far along with revenue of AED5.538 billion. The completion and handover of units was cited as the chief reason for its figures.