This has led to earnings per share of Dhs0.30 compared to earnings per share of Dhs0.15 for the previous year increasing net asset value to Dhs1.82 per share from Dhs1.58 per share in 2011 on a fully diluted basis.
A strong final quarter drove revenue for the year to Dhs11,403.9m compared to Dhs6,742.6m in 2011. The increase was driven by the continued success of our ongoing programme of unit and land plot deliveries to our customers including the Government of Abu Dhabi.
For the year, the Company recognised significant revenues from its development business of Dhs9,965.9m (2011: Dhs5,435.2m) from the sale of units, land plots and project management fees. Recurring revenues increased by 10% to Dhs1,438.0m (2011: Dhs1,307.4m). Rental income from investment properties, which include Aldar’s office, residential and retail portfolio, increased to Dhs634.2m (2011: Dhs541.0m) and operational businesses such as operative villages, schools and hotels generated Dhs803.8m (2011: Dhs766.4m).
Aldar ended the year with Dhs2,259.8m in cash and bank balances (2011: Dhs4,157.7m) and a 23% reduction in total borrowing to Dhs14,014.3m compared to Dhs18,295.5m mainly because of repayment of loans. During 2012, the Group successfully signed a new Dhs4.0bn revolving credit facility, of which Dhs800m was drawn at period end. This facility will enable the Company to optimally manage its working capital and liquidity requirements over the next two years.
Profits for the year contributed to an increase in net assets of 15.3% to Dhs8,179.5m compared to Dhs7,093.6m at 31 December 2011.
In light of these results, the Board of Directors has recommended a cash dividend of 6 fils per share for shareholder approval at the AGM.
Commenting on the results for the year, Ali Eid AlMheiri, Chairman of Aldar Properties, said, “2012 has been a truly exceptional year for Aldar. We successfully moved forward in our asset delivery programme, generating significant revenues and profits for our shareholders – reinforcing our position as Abu Dhabi’s premier developer. From a position of strength, we look now to a future of activity and opportunity. Our shareholders will benefit from both the continued efforts of our employees to realise value from our sizeable asset base and from our proposed merger with Sorouh that will create a significantly stronger platform from which to drive sustainable growth.”
Aldar has sold 102 units over the year, including 38 in the final quarter, with a value of Dhs352.9m, and handed over 1,882 residential units to customers at Al Raha Beach during the year. Remaining inventory available for sale consists of 348 units. A further 1,457 units were delivered at Al Falah during the year, the largest national housing programme in Abu Dhabi.
The development of Yas Mall, Aldar’s 233,000 sqm flagship retail development on Yas Island, proceeds on programme. Most of the concrete pouring is now complete, with construction ahead of schedule. The cinema complex is ready for fit out. A leasing programme to ensure an optimum tenant mix continues, with 62% of Yas Mall pre-leased or under heads of terms agreements.
At Al Falah, Abu Dhabi’s largest and most prestigious development of housing for UAE Nationals, the Village Retail developments are ready for tenants to fit out. At quarter-end, 96 out of 102 units were pre-leased or under advanced negotiations. Fit out will begin in Q1 2013.
Yas Waterworld Abu Dhabi, was delivered to operator Farah Leisure on schedule, during the quarter. The water park, which features 43 rides, is the latest leisure attraction on Yas Island, features a number of unique rides. Around 700,000 visitors are expected to visit the park during 2013 increasing footfall dramatically on Yas Island.
We are delighted to have signed an agreement for the sale of the 18,000 sqm Al Noor building at Al Raha Beach to a joint venture with Etihad Airways during the quarter. The building, which was completed earlier in the year, will be leased on a long-term basis to Etihad Airways. In addition to Al Noor building, the joint venture has acquired a further 23,000 sqm of office space that it will lease to Etihad Airways on a long-term basis. Together these transactions will add significantly to Aldar’s recurring revenue base going forward.
Aldar’s community retail operations continued to develop at Al Raha Beach during the quarter as tenants completed fit out. Waitrose Supermarket and Café Firenze both opened in Al Zeina community during the quarter and Costa Coffee completed its fit-out ahead of opening in February 2013. Aldar had 150,000 sqm of retail space under lease at the end of Q4 across Al Raha Beach, Gardens Plaza, Al Jimi Mall, Motor World, Yas Island, HQ and Al Mamoura building. The lease of Al Noor building to Etihad Airways will help drive more daily footfall to our retail assets at Al Raha Beach over the short term.
Aldar’s leasing portfolio at Al Raha Beach was established in Q2 to complement Aldar’s sales and rent-to-own residential offers. 285 of the 378 units were leased at the end of the year.
There was consistent quarterly performance in the hotel portfolio in Q4 with occupancy up to 77% versus 68% in Q4 2011 across the portfolio against a backdrop of a soft market. Average occupancy for the year was up to 65% (FY 2011 61%).
Enrolment for Q4 was up 18% year-on-year at the six Aldar Academies’ school with over 3500 pupils now enrolled across Aldar Academies’ six schools in Abu Dhabi and Al Ain.
On 21 January, the boards of Aldar Properties and Sorouh Real Estate recommended a merger between the two companies to their shareholders. Shareholders are scheduled to vote on the merger at their respective extraordinary general meetings (EGMs) on 21 February 2013 and in the event that quorum is not achieved, at a subsequent EGM on 3 March 2013.
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