Aldar Properties, Abu Dhabi's biggest property developer, said on Wednesday its profit surged 200 percent in Q2, mostly due to a one-off gain following its merger with rival firm Sorouh Real Estate.
The builder of Abu Dhabi's Formula One race track made a Q2 net profit of AED1.25bn ($340.3m), compared with AED418m during the same period in 2012, the company said in its first earnings announcement since the merger completion in June.
Quarterly earnings included a one-time gain of AED2.6b from combining its business with Sorouh, Aldar said.
However, revenue for the quarter dropped to AED1.3bn from AED4.6bn in the prior-year period. The developer booked provisions, impairments and write downs of AED1.1bn in the quarter.
H1 profit grew 57 percent to AED1.41bn ($383m).
Aldar was planning to refinance outstanding debt totalling AED14bn ($3.81bn), including a $1.2bn bond that matures next year, the company's chief financial officer Greg Fewer said.
"We will be requesting many discussions with banks on various debt, including the $1.2bn debt maturing next year," Fewer said.
Alongside its quarterly financial results, Aldar said it would hand over more than 7400 residential units in the next 12 months.
The completed developments include two towers on Al Reem Island, three residential towers at The Gate Towers on Al Reem Island, the first phase of the Alghadeer development in Abu Dhabi’s east and Al Rayyana.
Construction of Yas Mall, Aldar’s 233,000 sqm flagship retail development on Yas Island, was 80 percent complete and The Mall at World Trade Center Abu Dhabi, managed by Aldar, would open by the end of the year, the company said.
Aldar said recurring revenues from investment properties, hotels and schools increased 10 percent to AED767m during the first half.
Its hotel occupancy rate had increased to 78 percent from 58 percent a year earlier.
For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.