Aldar Properties, Abu Dhabi’s largest real estate developer, reported net profit for 2012 surged 109 percent to AED1.340bn (US$364.8m), on the back of increased sales and the restructuring of its credit facilities, it was announced on Monday.
Revenue increased 69 percent to AED11.403bn, on the back of an 83 percent rise in revenue from land sales and the handover of completed units.
While the developer, which is 35 percent owned by the Mubadala Development Company, ended the year with cash and bank balance reserves down 45 percent to AED 2.259bn, it successfully renegotiated its debt and credit facilities.
Total borrowing fell 23 percent to AED14.014bn mainly because of repayment of loans, while the developer drew down AED800m of a new AED4bn revolving credit facility.
“This facility will enable the Company to optimally manage its working capital and liquidity requirements over the next two years,” the company said in a statement. “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,” it added.
“2012 has been a truly exceptional year for Aldar… 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," said Ali Eid AlMheiri, chairman of Aldar Properties.
On January 21, the boards of Aldar Properties and Sorouh Real Estate, the Gulf’s 10 and 11 biggest real estate companies in terms of market cap, recommended a merger between the two companies to their shareholders and a final decision is expected in March.
In terms of product delivery, Aldar sold 102 residential units in 2012, worth a total of AED352.9m and handed over 1,882 residential units to customers at Al Raha Beach during the year.
Yas Mall pushed ahead, with 62 percent of units leased so far, while the Yas Waterworld was handed over in the fourth quarter and is expected to attract 700,000 visitors in the first 12 months.