Monday, Feb 13, 2012

By Tahani Karrar-Lewsley

Of DOW JONES NEWSWIRES

(Adds chairman's comment's on outlook in 7th-8th paragraphs.)

DUBAI (Zawya Dow Jones)--Abu Dhabi-based developer Aldar Properties Co. (ALDAR.AD) said Monday it swung to a full-year 2011 net profit of 642.5 million U.A.E. dirhams ($174.9 million) from a loss of AED12.66 billion the previous year, boosted by land sales and recurring revenue from investment properties, hotels and schools.

Revenue rose to AED6.74 billion from AED1.79 billion.

"The company recognised AED5.435 billion from the sale of land plots and completed residential units and project management fees," it said in a statement. "The increase was primarily due to revenue from land sales to the government supplemented by increased sales of residential units."

Recurring revenue rose 48% to AED1.31 billion from AED885.7 million, and rental income from investment properties, which include Aldar's commercial office and retail portfolio, increased to AED540.9 million from AED325.0 million the previous year.

Operational businesses such as schools and hotels generated AED766.5 million.

Last year, government-related investment firm Mubadala Development raised its 20% share in the company to 49% after converting AED2.11 billion worth of Aldar bonds into shares.

Aldar Chairman Ali Eid Al Mheiri said Aldar delivered milestones from its development activities in 2011 and undertook a number of financial initiatives to return Aldar to long-term growth and ensure value creation for stakeholders. He also said Aldar would be better positioned this year.

"We are entering 2012 in a stronger financial position with lower debt levels and stable cash flows. We are a more efficient organization that is well positioned to capitalise on market opportunities and drive shareholders' returns by deploying capital selectively into key projects," he said.

Aldar's shares closed flat at AED1.01 Monday in a slightly positive overall market.

-By Tahani Karrar-Lewsley, Dow Jones Newswires; +9714 446-1692; Tahani.Karrar@dowjones.com

(END) Dow Jones Newswires

13-02-12 1542GMT