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Fri 6 May 2011 11:01 AM

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Ferrari World helps Aldar return to profit in Q1

Abu Dhabi developer posts first quarter net profit of over $51m compared to loss a year earlier

Ferrari World helps Aldar return to profit in Q1

Aldar Properties, the struggling developer rescued by a $5.2 billion bailout by Abu Dhabi last quarter, returned to profit, after it booked sales of assets, including the Ferrari World theme park.

The builder of the Yas Marina Formula One circuit posted a first-quarter net profit of AED189.1 million ($51.50 million) compared with a loss of AED314.2 million in the same period last year, it has said.

Revenue jumped to AED784.7 million from AED227 million a year earlier, it said.

Shares of Aldar closed 2.5 percent lower on the Abu Dhabi bourse before the results were announced.

The developer, which ended a five-quarter losing streak, said it booked the sale of Ferrari World Abu Dhabi and related assets to the government of Abu Dhabi in the quarter.

It also issued planned mandatory convertible bonds of AED2.8 billion in March to state-owned investment vehicle Mubadala.

Revenues also came from the sale of completed properties in Al Gurm and Al Bandar residential communities and from the performance of operational assets including the seven Yas Island hotels in Abu Dhabi, the capital of the UAE.

The company ended the quarter with AED6.2 billion in cash and bank balances.

Aldar's chief executive said last month that he did not foresee any further impairments on its property portfolio in the near future, and will return to profit in 2011.

The developer's fourth-quarter loss amounted to AED11.14 billion.

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