Developer Aldar Properties has reported a healthier set of figures ahead of its potential $15bn merger with competitor Sorouh.
The company said that its third quarter profits increased by 43% to $56m even though the timing of sales meant year-on-year revenues for the period dropped by 48% to $436.9m.
In the nine months to date, revenues have more than doubled to $2.67bn, while profits have increased by 22% to $225.4m.
The Abu Dhabi-based developer said that revenues have been driven by the deliver and handover of property at Al Raha beach, where it handed over 132 residential units and 25 land plots. It has also agreed the long-term lease of the 17,700m2 Al Noor office building at Al Raha beach to Etihad Airways.
It also said that it has a strong liquidity position, having built its revenue base from existing investment properties and operating businesses, which broke through the AED 1bn ($272m) barrier for the first nine months of the year, and increased by 8% during the quarter.
Revenes were also boosted by attracting more tenants to its office portfolio and increased revenues from maturing retail operations – particularly Gardens Plaza and IKEA.
The firm said that it had continuyed to reduve its debt, paying off $17.2m during the quarter, with plans to pay down a further $84.2m by the end of the year. Its outstanding debt pile now stands at $3.93bn, compared with almost $5bn at the start of the year.
The potential merger with Sorouh has meant that the firm has revalued its assets “to reflect current conditions”. This has led to it writing off $200m from the value of certain assets – largely its hotels business. However, it said that this has been partially offset by the appreciation in the value of its ongoing Yas Mall project.
In total, around $117m that had been previously written off the value of properties has now been written back as prices improve.
Some 60% of the 233,000m2 Yas Mall development has been pre-sold to retailers, and progress is continuing on site where approvals were recently gained for the its on-site substations.
The company’s chairman, Ali Eid Almheri, said: “We are proud of our contribution to Abu Dhabi’s ongoing growth and that our established delivery record continues to produce stable cashflows 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.”
