Apr 28 2012
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Aldar reports first quarter 2012 financial results
Net profit of AED 478.2 million (Q1 2011: Net profit of AED 189.1 million)
Revenue of AED 3,589.1 million (Q1 2011: AED 784.7 million)
AED 2.2 billion recognised from Government sales announced in 2011
Development - Continued progress across owned and managed projects
Al Raha Beach Deliveries - Successful handover of 606 completed residential units, land plots to the Government of Abu Dhabi and related entities
Yas Mall - Contractors on site as underground works continue.
Ace Hardware (Yas Island) - 5,443 SQM store handed over 7 weeks ahead of schedule
Al Bateen Park - 359 unit development over 90% pre-sold and on schedule for Q4 delivery
Al Falah -1,000 villas of major Emirati Housing development scheduled for handover in Q2
Yas Waterworld Abu Dhabi - significant structural works ahead of Q4 delivery
Investment Properties and operational businesses
IP - Maturing revenues from 2011 new assets contributing to quarter on quarter growth
Hotels - Continued growth in profits
Leisure - Yas Links selected as 24th best golf course outside America by Golf Digest
Schools - 3,500 students across six schools - new classes expected for 2012/13
Aldar Properties PJSC ("the Company"), Abu Dhabi's leading property development investment and management company, today announced its financial results for the first quarter ended 31 March 2012 reporting a net profit of AED 478.2 million compared to AED 189.1 million for the same period last year.
Revenue for the quarter increased to AED 3,589.1 million (Q1 2011: AED 784.7 million). The Company recognised AED 3,229 million (Q1 2011: AED 470.9 million) from the sale of land plots and completed residential units and development management fees, of which AED 2.2 billion was related to sale contracts signed in 2011 with the Government of Abu Dhabi and related entities.
Recurring revenues for the period amounted to AED 360.1 million, up 14.8% from AED 313.7 million for the first quarter 2011. This increase was primarily due to improved performance in Aldar's operational businesses, which include schools and hotels, which generated revenues of AED 148.6 million (Q1 2011: AED 137.9 million). Rental income from investment properties, which include Aldar's commercial office and retail portfolio, increased to AED 150.8 million (Q1 2011: AED 123.3 million).
Aldar ended the period with a total cash and bank balance of AED 5.8 billion (31st December 2011: AED 4.2 billion). Aldar successfully signed an AED 4 billion revolving credit facility with National Bank of Abu Dhabi at competitive rates. The facility, which has a tenor of three years and remained undrawn at the quarter end, will be used for general purposes in support of Aldar's normal course of business activities and will allow the Company to optimally manage its working capital and liquidity requirements over the next three years.
From an operational perspective, the period saw the delivery and handover of residential units and land, continued construction progress for the Company's owned and managed development activities and improved performance from operational businesses.
Aldar handed over 606 residential units at Al Raha Beach, of which 425 were to third parties and seven at Al Gurm, the private luxury residential resort during the first quarter. The Company also handed over plots of land to the Government of Abu Dhabi and related entities at Al Raha Beach as part of the agreement announced in January 2011, with further plots to be transferred as infrastructure is developed and finalised. Further unit handovers as part of the Government sales agreements signed in 2011 are expected to take place over the course of 2012.
At Yas Mall, Aldar's 235,000 SQM retail development on Yas Island, contractors have been mobilized and are now on site. Piling works are continuing and the installation of underground services has commenced. Set to be Abu Dhabi's largest mall, the project remains on schedule for delivery in Q4 2013 and pre-leasing is over 50% with over 18 months to completion.
Also on Yas Island, Aldar handed over the 5,443 SQM Ace Hardware store to the tenant Al Futtaim for fit-out, seven weeks ahead of scheduled delivery. The store is set to open this summer joining the Middle East flagship IKEA store which opened in 2011.
Significant progress was made at Al Bateen Park, a new residential development at the heart of Abu Dhabi Island. The project, which is made up of 284 apartments and 75 villas and townhouses, is already over 90% pre-sold and remains on its original delivery schedule of Q4 2012.
The first quarter saw significant progress at Al Falah, the 12.5 million SQM master planned development located to the east of the Abu Dhabi International Airport and the Abu Dhabi-Dubai Highway which will provide 4,857 homes for middle-income UAE families. Construction of the first phase of the project, which includes 1,000 villas, is nearing completion and hand over to the relevant authorities will take place in the second quarter.
Yas Waterworld Abu Dhabi, the water park with 43 rides and attractions has seen significant structural progress during the period. Situated next to the Ferrari World Abu Dhabi, Yas Waterworld Abu Dhabi will be delivered in the fourth quarter of 2012.
Aldar's investment properties saw maturing revenues contributing to quarter on quarter growth as the Company enjoyed the annualised benefit of new assets such as IKEA Yas Island and retail at established developments such as Al Bandar and Al Raha Gardens.
Aldar's operational businesses also performed well during the first quarter. Aldar's hotel portfolio which includes seven on Yas Island showed robust occupancy levels in a soft pricing market as the leisure and entertainment destination continues to develop.
These efforts were further boosted by the news that Yas Links was selected as the 24th best golf course in the world outside America by Golf Digest, one of the world's leading golf publications, after only two years of operation.
The total number of students studying at Aldar Academies' six schools has now reached 3,500 for the current academic year. The schools have a total capacity of 5,500 pupils and pupil numbers are expected to increase as new classes launch in line with market demand.
Commenting on the results, Ali Eid AlMheiri, Chairman of Aldar Properties, said:
"Aldar's financial strength is clearly evident in these results for the first quarter of the 2012 financial year. Building on the solid financial foundations that were created in 2011, these results reflect the significant deliveries of residential units and land plots at Al Raha Beach that began in the quarter and will continue through the year, supported by strong recurring revenues from our operating businesses.
A number of key milestones were achieved in our investment property portfolio and managed development projects. We now look ahead to the completion of projects such Al Bateen Park, Al Ward and Al Falah, the major housing community for UAE Nationals where 1,000 of 4,857 villas will be handed over to the relevant authorities imminently.
Last year we took steps to position Aldar's operations to deliver its future strategy. The successful completion of this process has ensured the business is now in a position of strength to benefit from developing market opportunities."
Aldar Properties PJSC is Abu Dhabi's leading property development, management and investment company. It listed on the Abu Dhabi Securities market in 2004. Aldar was established to support the region's development through the creation of high quality, attractive and sustainable communities equipped with residential, commercial, retail, leisure, hospitality, education and medical facilities.
Aldar's diverse property portfolio includes major developments and re-developments within Abu Dhabi including Yas Island, Al Raha Beach, Central Market, Al Falah, and Noor Al Ain. The company owns a sizeable land bank in strategic locations throughout the Emirate.
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© Press Release 2012
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