Aldar Properties, the UAE’s second-largest developer by market value, said its first-quarter profit surged 79% to a record on gains from its property investments.
Aldar made 450.7 million dirhams ($122.7 million) in the three months to March 31, Shafqat Ali Malik, the company’s chief financial officer said. It was the highest quarterly profit on record for the firm, which made 252.48 million dirhams in the first quarter of 2006.
“The growth in profit is attributable to fair value gains on investment property,” Malik said, without giving details.
The company’s land was valued at 539.4 million dirhams at the end of the quarter, he said without elaboration.
Earnings per share rose 73% to 26 fils.
Emaar Financial Services forecast in a Reuters survey last month that Aldar would report net profit of 306 million dirhams, up 21.2% from the year earlier.
Aldar raised $2.5 billion in an Islamic bond sale this year to finance planned projects worth $50 billion in Abu Dhabi over the next five to 10 years.
The company will also spend at least $1 billion on acquisitions in markets which could include Western Europe, Hong Kong and Singapore to balance shareholder risk, Chief Executive Ronald Barrott told Reuters in March.
Aldar won approval in March to allow foreigners to own up to 40% of its shares. Aldar shares rose 0.61% on the Abu Dhabi bourse on Monday.
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