Aldar Properties PJSC, Abu Dhabi’s leading listed property development, investment and management company, announced a net profit of Dhs453m for the first quarter of 2014, an increase of 194% from the same period of 2013. Revenues for the first quarter 2014 were 1,719m up 6% on the first quarter of 2013.
The growth in net profit for the first quarter was primarily driven by the continued handover of infrastructure and units to the government, handover and sales of key residential developments to customers and higher recurring revenues from the merged Company’s hospitality and investment property portfolio.
Commenting on the results, H.E. Abubaker Seddiq Al Khoori, Chairman of Aldar Properties, said, “I am pleased to report a strong start to the year. We are seeing impressive sales and leasing activity, debt has been reduced by the repayment of Dhs2.8bn in loans and we are on track to meet synergy savings for the merger. In April, we embarked on the next phase of Aldar’s development story with the launch of three new developments with a combined gross development value of approximately Dhs5bn. We are also assessing 20 other development projects as we look to monetise Aldar’s extensive land bank and continue to create value for our shareholders.”
Recurring revenue in the first quarter totalled Dhs497m, an increase of 22% from Q1 2013. This was driven by the impact of recurring revenue assets acquired from the business combination, in addition to the new residential leases and continuing activity in the hospitality portfolio.
Since the start of 2014, Aldar repaid Dhs2.8bn (20% of gross debt) of loans upon receipt of Dhs3.5bn in contractual payments from the Government of Abu Dhabi thereby significantly deleveraging the business and demonstrating its commitment to managing debts to target levels. Aldar continues to maintain a strong cash position with Dhs9.7bn of cash and available liquidity at the end of the quarter.
Merger integration completed
As previously announced, Aldar successfully completed all aspects of its integration significantly ahead of schedule. The enlarged platform for growth is fully established and Aldar is on-track to meet its synergy estimates that are derived principally from operational efficiencies and interest savings on acquired debt.
Dhs5bn of new developments launched
In April 2014, Aldar launched three major new residential developments in prime areas of Abu Dhabi, with a combined gross development value of approximately Dhs5bn. Off-plan sales for the three developments will commence in May 2014 starting with Al Hadeel on the 17th of May. Construction for all three developments is scheduled to begin in 2015. Two of the developments, Ansam on Yas Island, and Al Hadeel at Al Bandar on Al Raha Beach are located in investment zones and open to purchase by non-UAE citizens. The third development, Nareel Island, will be developed as a prime residential lifestyle master-planned community for UAE nationals to build bespoke villas.
•814 units at the Gate Towers handed over to customers.
•The handover of Tala Tower to owners is substantially complete, with over 371 out of the 375 (99%) residential units successfully handed over.
•The first phase of the 2,130-unit Al Ghadeer development in the Eastern Region of Abu Dhabi continues to be handed over to owner. There is good sales momentum at the development with over half of the available inventory sold in the first quarter.
•The National Housing projects at Al Sila’a in the Western Region, Al Ghuraibah in Al Ain, as well as Al Watani, Al Falah and Raha Gardens in Abu Dhabi have been substantially completed and have received building completion certificates.
•Tenants continue their fit out work at Yas Mall, Abu Dhabi’s first super-regional mall and the key retail component of Yas Island and the development is on-track for opening in November 2014.
•The commercial portfolio is 83% leased.
•At Al Rayyana, tenants continue to move into the development and it is now 63% leased and we are seeing significant interest for bulk leases at the development.
•Leasing activity at the Gate Towers commenced in the fourth quarter of 2013. Following significant demand, over 250 units have been leased or sold since handover.
•Occupancy rates at the hotels on Abu Dhabi’s Yas Island and the Tilal Liwa Hotel in the Western region of the emirate increased to 84% in Q1 2014 from 82% in Q1 2013.
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Obaid Al Yammahi or Jane Wellington