Aldar Q3 profits rise, books January land sales
Aldar Q3 profits 144 million dirhams; Q3 revenues at 3.13 bln dirhams; Q3 revenues up on 2.6 bln dirham land sale to Abu Dhabi
November 3, 2011 5:36 by p.deleon
Aldar Properties’ reported high third quarter profits on Thursday, the third consecutive quarterly increase after massive losses in 2010, as the Abu Dhabi-based developer booked gains from a January land sale to the government.
The builder of the Yas Marina Formula One circuit said it had profit of 144 million dirhams for the quarter ended Sept. 30, compared with a net loss of 731.2 million dirhams in the same period a year ago, it said in a statement.
The earnings beat analyst average forecasts for profit of 139.8 million dirhams.
Revenues for the quarter were 3.13 billion dirhams compared with 505.3 million dirhams in the same quarter in 2010. Revenues included 2.6 billion dirhams from land sales to the Abu Dhabi government which bailed out the indebted developer earlier this year.
In the third quarter, Aldar raised borrowings of 734.6 million dirhams, it said in the statement.
Aldar got a $5.2 billion rescue package from Abu Dhabi earlier this year, and sold many of its properties including the Ferrari theme park and other land assets to the government.
It also issued planned mandatory convertible bonds of 2.8 billion dirhams in March to state-owned investment vehicle Mubadala.
Aldar recently appointed Greg Fewer, an executive at Mubadala, as it new chief financial officer, in a growing indication of the government’s influence in the company.
Aldar said it earned revenues of 67.3 million dirhams from its hotel segment and 29.6 million dirhams from schools.
Real estate firms in United Arab Emirates were hit hard by the global financial crisis in 2008 with property prices dropping by about 60 percent from its peak.
Aldar is limping back to recovery after posting record quarterly losses at the end of 2010. Investors in Aldar’s $1.1 billion Islamic bond, due on Nov. 10, are betting it will repay the issue even if it means more aid from Abu Dhabi.
Aldar’s shares ended 1 percent higher before the announcement.