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Sun 26 Sep 2010 12:49 PM

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Abu Dhabi's Aldar disputes profit outlook report

'Aldar did not state that it would show profits or losses in the third and fourth quarters.'

Abu Dhabi's Aldar disputes profit outlook report
ABU DHABS ALDAR: The government owns a 37 percent stake in Aldar. (ITP Images)

Aldar Properties, Abu Dhabi's largest developer by market value, disputed a newspaper report on Sunday suggesting it will swing to profit in the third and fourth quarters due to project deliveries.

"Aldar Properties did not state that it would show profits or losses in the third and fourth quarters during an interview with Arabic daily Al Bayan," the company said in a statement to Reuters.

In an interview with Al Bayan, Chief Commercial Officer Mohamed al-Mubarak said the company has enough liquidity to finance its projects and plans to announce new developments soon, adding there were no plans to convert Aldar into a private entity.

When asked if losses will continue for the remainder of the year, Mubarak told the paper: "No, the third and fourth quarters will see a significant and large improvement on the back of project deliveries ... and an upturn in the Abu Dhabi property and land market."

Aldar missed forecasts with a second-quarter net loss of $129.4 million hit by lower property sales and investment valuations.

"We will announce new residential projects soon for Yas Island and Al Raha Beach, comprising of villas and residential units for high and mid-income users," Mubarak added.

He said Aldar sold 60 percent of its properties so far to foreign and national investors.

The government owns a 37 percent stake in Aldar. (Reuters)

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