Aldar reports $130m net profit for Q1 of 2012
Abu Dhabi government assistance helps property developer stay in black
Aldar, Abu Dhabi’s leading property developer, has reported a $130m (AED 478.2m) net profit for the first quarter of 2012.
The figure represents an increase of 153% increase on figures from the same period last year when it made $51.5m (AED189.1m).
The developer’s sales stood at $977m (AED 3.59bn) for the quarter, up from $213.6m (AED 784.7m) during the same period in 2011.
Aldar is responsible for some of Abu Dhabi’s most recognisable developments such as Yas Island, Al Raha Beach, Central Market and the company’s own distinctive headquarters on the outskirts of the Emirati capital.
The announcement comes following recent government rescue packages worth almost $10bn (AED 37.7bn) which helped stabilise the property developer following the downturn.
Around $599m (AED 2.2bn) of Aldar's revenues were made up of sales contracts with the Abu Dhabi government and related entities, the company said.
Aldar has received government support worth billions of dirhams as the developer, like many others in the UAE, was hit hard by the downturn.
In December, Aldar sold some of its prized assets, including Central Market and hundreds of homes on Al Raha Beach, to the Abu Dhabi Government for $4.6bn (AED 16.8 bn).
Under a separate deal announced in January 2011, the Abu Dhabi Government said it would buy $3bn (AED 10.9bn) of the company's Yas Island infrastructure assets, including the Ferrari World theme park, as well as $1.5bn (AED 5.5bn) of residential units and land. The company also issued a $762m (AED 2.8bn) convertible bond.
The total assistance provided by the Abu Dhabi government amounts to around $9.6bn (AED 36bn).
Aldar said that it has handed over 606 completed residential units and land plots at the Al Raha Beach development to the government under an agreement signed last year.
“Further unit handovers as part of the Government sales agreements signed in 2011 are expected to take place over the course of 2012,” the company said in a statement.