By Andrew Sambidge
Company chairman says much progress made in 2009 despite 73% drop in earnings.
The chairman of Aldar Properties said on Sunday he was "cautiously optimistic" about prospects for 2010 after the company reported earnings of AED906m for 2009, a 73 percent drop on 2008 earnings.
Ahmed Ali Al Sayegh said "much progress" has been made during the past year, in which the UAE real estate market had been hit hard by the impact of the global economic crisis.
"These figures demonstrate the underlying financial strength of Aldar. Much progress was made in 2009 in what was a particularly difficult financial year," he added.
"We remain cautiously optimistic about the year ahead which will see further evidence of progress being made towards realising our long-term strategic and financial objectives.”
Aldar reported AED906.8m in earnings before interest, depreciation and amortisation in 2009, compared to AED 3.34bn in 2008, the company said in a statement.
Aldar said that it was able to increase its net asset value by 3.9 percent to AED16,6bn at the end of 2009 while revenue for the year was just under AED2bn, compared to nearly AED5bn the previous year, a fall of 60 percent.
The decrease, the company said, was due to lower sale of land plots during 2009.
Developments under construction were AED18bn at year end compared to AED23bn as at the end of 2008, it added.
Aldar said it continued to maintain its long term view towards the strength of the Abu Dhabi real estate sector, adding that there was "a fundamental undersupply of quality commercial and residential products in Abu Dhabi".