Abu Dhabi's Aldar Properties Posts $189 Million in Profits for Q-1

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According to Aldar Properties PJSC, the Abu Dhabi-based company continued growth in recurring revenues and ongoing progress on development projects in the first quarter of 2011.

Aldar reported a net profit of AED 189.1 million for the first quarter of 2011, compared to a loss of AED 314.2 million for the first quarter of 2010.

Revenue for the period was AED 784.7m, an increase of more than three times the comparative period last year (Q1 2011: AED 227m). The majority (AED 433.3m) came from the delivery of completed units at the Al Gurm and Al Bandar residential communities, whilst AED 191.7m was delivered from the performance of operational assets including the seven Yas Island hotels and its Aldar Academies schools across Abu Dhabi. Rental income on investment properties generated AED 93.1m and AED 66.6m was generated from the group's project management and asset management services. Net asset value increased by 5.8 percent in the first quarter of 2011 compared to 31 December 2010.

During the period, the Group recognised the sale of Ferrari World Abu Dhabi and related assets to the Government of Abu Dhabi and also issued mandatory convertible bonds with a total value of AED 2.8 billion to Mubadala Development Company PJSC. As a result, the Company ended the quarter with AED 6,156.1 million in cash and bank balances, an increase of AED 3,724.6 million compared to 31 December 2010. The management team has overseen a reduction in the group's cost base during this period with general and administrative expenses, excluding depreciation, down by nearly 50 per cent.

The first quarter also saw Aldar handover the largest IKEA store in the Middle East and North Africa on Yas Island ahead of schedule. Continued progress was made on the Al Zeina residential community at Al Raha Beach and the first phase, which consists of three residential buildings, will be delivered in the second quarter of this year. The remaining four buildings are scheduled for completion in the second half.

Al Zeina follows the successful completion and handover of the neighbouring Al Bandar community at Al Raha Beach last year, which is now over 90 percent sold and will be joined by Al Muneera which is also scheduled for delivery in the second half of this year.

In March, Aldar moved into HQ, its Grade-A quality office building at Al Raha Beach. A significant proportion of the building is now leased by a range of international and local firms including ATIC, Global Foundries, ABB and the Insurance Authority of the UAE.

Ali Eid Al Mehairi, Chairman of Aldar Properties said, "This improved operational performance is a positive step, and the entire business is fully focused on delivering sustained returns to all of its shareholders by concentrating on our core business, prioritizing current projects and managing cash flow. I would like to thank the management team and all Aldar staff for the contribution they have made in the past quarter."

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