Builder of Abu Dhabi's Formula One race track says revenue plummeted during quarter
Abu Dhabi developer Aldar Properties, set to acquire smaller rival Sorouh Real Estate in a few weeks, reported a 67.7 percent slump in first-quarter net profit on Tuesday amid continued weakness in the emirate's real estate market.
Aldar, builder of Abu Dhabi's Formula One race track, made a quarterly profit of AED154.3m ($42m) compared to AED478.2m in the corresponding period of 2012, it said in a statement on the Abu Dhabi bourse.
However, it marginally exceeded estimates of analysts polled by Reuters, who had expected an average profit of AED151.3m.
Revenue for the quarter slumped to AED1.6bn compared to AED3.6bn in the prior-year period. The developer said the drop was a result of a large number of unit handovers recorded in 2012.
During the quarter the company delivered 410 residential units and 66,000 square metres of land plots, and made 46 new sales of unit.
In the last few years Abu Dhabi's largest developer by market value was hit by a real estate market collapse in the emirate and rescued with government aid of over $10 billion. In return, it sold assets to the government including the Ferrari World Theme Park.