Aldar posts Dh430m profit in Q3
Aldar Properties net profit for third quarter dropped 43 per cent to Dh430 million from Dh760m in the same period last year
Net profit for the nine months declined 53 per cent to Dh1.57 billion from Dh3.36bn, while gross revenues stood at Dh1.74bn despite "still challenging economic conditions," the company said.
Developments under construction increased significantly by 58.1 per cent compared to end-2008 to Dh36.27bn, representing a net asset value per share of Dh6.68 compared to Dh6.22 as of December 31, 2008. Total net asset value stood at Dh17.2bn, up 7.4 per cent in the first nine months of the year. Cash and bank balances were at Dh11.07bn in the first nine months.
Ahmed Al Sayegh, Chairman of Aldar Properties, said: "In spite of the recent very challenging world economic conditions, Aldar has continued to deliver positive results throughout the year and is seeing its assets grow in value. Aldar continues to focus on the delivery of key projects, whilst pursuing a well planned business strategy in conjunction with a measured approach to development which we believe will deliver ongoing value creation for shareholders and all other stakeholders."
During the third quarter, Aldar completed and handed over the Yas Marina Circuit, which will this week host the inaugural Formula 1 Etihad Airways Abu Dhabi Grand Prix. Ferrari World Abu Dhabi, the world's largest indoor theme park, is progressing well and a topping out ceremony will be held shortly. The Ferrari theme park is scheduled to open in the second half of 2010. The company said work on the Yas Links Golf Course, the first links golf course in the region, is nearing completion.
Al Raha Beach, the first phase of development is progressing with the Al Bandar district scheduled for handover early in the second quarter 2010 with Al Zeina and Al Muneera following from the end of the year.
Chet Riley, Vice-President, Equities Real Estate Analyst, Nomura International, said in his recent report: "Aldar appears to be sticking to its 'we won't just give it away' mentality, which is fine if you have the balance sheet capacity. The capital commitments have been 'trimmed' to about Dh37bn, and we expect this to fall further as we predict development delays."
