Abu Dhabi's Biggest Developer Reports 54.3% Decline in Revenues for Q-1

Abu Dhabi's Biggest Developer Reports 54.3% Decline in Revenues for Q-1

Commercial News » Commercial Real Estate Edition | By Michael Gerrity | April 29, 2010 10:45 AM ET

Abu Dhabi-based Aldar Properties PJSC today announced its financial results for the period ended 31 March 2010.

Revenue for the period was AED 227.0 million compared to AED 496.6 million for the period ended 31 March 2009. The 54.3% decrease was mainly due to lack of property sales. However, the company has started to see steady income in recurring revenue from its commercial and hotel operations.

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 Abu Dhabi'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, Nareel Island, and Noor Al Ain. The company owns over 50 million square meters of land in strategic locations throughout the Emirate.

The company incurred a net loss for the period of AED 314.2 million compared to a net profit of AED 888.6 million for the period ended 31 March 2009; this was primarily due to lower gains from fair valuation of investment properties. During Q1 2009, the company recognized AED 919.8 million as fair value gains compared to AED 12.2 million for current period.

Net asset value stood at AED 16,319.3 million at the reporting date compared to AED 16,650.5 million at 31 December 2009. Investment in projects under construction (comprising investment properties under development and development work in progress) was AED 19,521.0 million compared to AED 17,923.6 million at the end of 2009.

Significant progress has been made across the development portfolio during the first quarter, notably at Al Raha Beach where units in the Al Bandar project will be handed over to owners from June. May will see the start of tenant fit out at the iconic grade A HQ office building, where more than 50 per cent of the space is already under offer.

Work continues on Al Falah, a Government-funded Emirati housing project. This development is part of a growing pipeline of management fee earning Government and third party projects which include the recently announced agreement with Al Ain Municipality to deliver the infrastructure for the Shiebat Al Watah development.

Master-planning for the next phases at Yas Island is well advanced and Ferrari World Abu Dhabi will open in the second half of 2010. The golf clubhouse, annexed to the region's first Links golf course, opened in March and is already exceeding projected membership levels. The Yas Links golf course is firmly on track for opening in Q2 this year.

At the Central Market mixed-used development, the Souk will open in second half of the year and work is progressing on the remainder of the project scheduled for delivery in 2012.

Ahmed Al Sayegh, Chairman of Aldar Properties, commented, "Aldar remains focused on the timely delivery of our existing development pipeline which will see the creation of a solid, long term investment portfolio and the expansion of our operational and asset management capabilities.

'Conditions are challenging but we were encouraged by the range of new projects recently announced, including a major infrastructure project for Al Ain Municipality, and remain fully committed to our mandate of playing its part in the Plan Abu Dhabi 2030."

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