• Home
• News Article

Feb 13 2012

more articles from

Aldar reports full year financial results for 2011

· Revenue of AED 6,742.6 million (2010: AED 1,791.1 million)

o Development revenue from land sales, completed properties and project management of AED 5,435.2 million (2010: AED 905.4 million)

o Recurring revenues from investment properties, hotels and schools up 48% to AED 1,307.4 million (2010: AED 885.7 million).

· Income of AED 3,942.3 million arising from sale of Central Market and Ferrari World Abu Dhabi

· Impairments, provisions and fair value write downs of AED 3,030.3 million reflecting market conditions and business reviews

· Net profit of AED 642.5 million (2010: Net loss of AED 12,658.4 million)

· Significant deleveraging with net AED 14,319.4 million reduction in borrowings over 2011

· Net asset value up 67% to AED 7,093.6 million (2010: 4,246.8 million)

· Recommended cash dividend of AED 0.05 per share

2011 OPERATIONAL HIGHLIGHTS

· Completed significant portfolio of development and income generating properties

o Residential - Completed 1,930 units across Al Raha Beach and Al Gurm

o Investment Properties - Completed Yas Island IKEA, Gardens Plaza and Motorworld Phase 1 (total new retail 76,000 sqm)

o Aldar Academies - Delivered three new facilities ahead of 2011/12 academic year

· Continued progress on major development projects including 235,000 sqm Yas Mall

· Continued growth in fee-based projects adding Yas Waterpark, Abu Dhabi Plaza (Kazakhstan) and Central Market during 2011

Aldar Properties PJSC ("the Company"), Abu Dhabi's leading property development investment and management company, today announced its financial results for the year ended 31 December 2011 reporting a net profit for the year of AED 642.5 million compared to a loss of AED 12,658.4 million for same period last year. This has led to an earnings per share of AED 0.15 compared to a loss per share of AED 4.39 for the previous year.

Revenue for the year increased to AED 6,742.6 million compared to AED 1,791.1 million for the year 2010. The Company recognised AED 5,435.2 million (2010: AED 905.4 million) from the sale of land plots and completed residential units and project management fees. The increase was primarily due to revenue from land sales to the Government supplemented by increased sales of residential units.

Recurring revenues increased by 48% to AED 1,307.4 million (2010: AED 885.7 million). Rental income from investment properties, which include Aldar's commercial office and retail portfolio, increased to AED 540.9 million (2010: AED 325.0 million) and operational businesses such as schools and hotels generated AED 766.5 million (2010: AED 560.7 million).

The Company has also written down the value of certain assets in line with prevailing market values and upon further business reviews undertaken over the course of the year. Accordingly, appropriate impairments, provisions and fair value losses of AED 3,030.3 million were recognised during the year.

Aldar ended the year with AED 4,157.7 million in cash and bank balances (2010: AED 2,431.5 million) and a net reduction in total borrowing of AED 14,319.4 million.

Net assets increased by 67% to AED 7,093.6 million compared to AED 4,246.8 million at 31 December 2010. The increase is contributed principally by the profit for the year and the conversion of AED 2,106 million of the AED 2,800 million convertible bond issued to Mubadala Development Company during 2011.

In light of these results, the Board of Directors have recommended a cash dividend of AED 0.05 per share for shareholder approval at the AGM.

OPERATIONS

During the year, Aldar completed 1,930 residential units including the Al Zeina and Al Muneera communities at Al Raha Beach, one of the first new beachfront residential developments in Abu Dhabi, and the first phase of Al Gurm, a luxury residential development. The completion of Al Bateen Park, a residential unit development in the heart of Abu Dhabi and Al Ward, a precinct within the Al Raha Gardens community, is anticipated in 2012.

The fee-based development portfolio grew with the signing of new development management contracts for Abu Dhabi Plaza Kazakhstan, Yas Island Waterpark and a construction management agreement for Central Market. These join existing contracts for Al Falah, a 4,857 villa Emirati Housing development for the Abu Dhabi Government, Cleveland Clinic Abu Dhabi, an USD 1.9 billion healthcare facility for Mubadala and the Masdar Institute of Science and Technology.

A range of properties held for investment were also completed and fully let in 2011 adding 76,000 sqm of new retail, including IKEA development on Yas Island, Gardens Plaza and Motor World, a custom-designed destination for new and used car showrooms and servicing facilities in Abu Dhabi. The construction contract was awarded for Yas Mall, a major retail development on Yas Island. With 235,000 sqm of retail trading area, Aldar has already leased over 40% of this development that will open in the fourth quarter of 2013.

In 2011, Aldar Academies delivered three new schools - Al Bateen Secondary School, Al Mushrif School and Al Ain International School. Aldar Academies now operates six schools with capacity for approximately 5,500 pupils in Abu Dhabi and Al Ain.

Commenting on the results, Ali Eid AlMheiri, Chairman of Aldar Properties, said:

"In 2011, Aldar delivered major milestones from its development activities. We also undertook a number of financial initiatives to return Aldar to long term growth and ensure ongoing value creation for all our stakeholders. 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."

-Ends-

About Aldar

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 infrastructure 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.

For more information, please contact:
Sami Eid
seid@aldar.com
+971 2 810 5678
+971 50 4562264

© Press Release 2012