ABU DHABI, 13th February, 2014 /WAM/ -- Aldar Properties PJSC yesterday announced a net profit of AED 25?2 billion for the year to 31st December 2013, an increase of 67 percent over 2012. Revenues for the full year totalled AED 38?5 billion and the fourth-quarter net profit totalled AED 427 million, a rise of 79 percent from the same period in 2012.
The growth in net profit for the year was primarily driven by the impact of the acquisition of Sorouh as well as ongoing handovers of units at key residential developments, sales of residential units, the handover of infrastructure as part of a transaction with the Abu Dhabi government announced in 2013, and higher recurring revenues from the company s hospitality and investment property portfolio.
Aldar Properties recorded a one-off gain on the acquisition of the net assets of Sorouh Real Estate following the merger between the two companies.
"We have moved quickly to build a platform for sustainable growth having completed our merger integration earlier than planned. We have strengthened our financial position, enhanced our capital structure and made progress balancing our business between development and recurring revenues," said Abubaker Seddiq Al Khoori, Chairman of Aldar Properties.
The Abu Dhabi-based leading property development, investment and management company registered recurring revenue growth of 27 percent to AED 83?1billion over 2013, largely due to the combination of Aldar and Sorouh investment properties in the merger.
Revenues from the hospitality portfolio, which includes seven hotels on Abu Dhabi s Yas Island and now the Tilal Liwa Hotel in the Western Region of the emirate, increased 21 percent to AED 504 million.
Residential leasing activity picked up strongly at the end of 2013 at newly completed projects, including the Gate Towers and Alrayyana, while the company s residential portfolio comprising leased assets at Sas Al Nakhl, Khalidiya Village, Al Raha Beach, Sun and Sky and Al Murjan Tower were almost fully leased.
Real estate development revenues were driven by the completion of key projects, in particular the Gate Towers, where 199 units were handed over during Q4 2013,as well as the ongoing programme of land and infrastructure deliveries to the government.
Aldar also substantially completed several national housing projects, which generate revenue for Aldar, including Al Sila a in the Western Region, Al Ghuraibah in Al Ain, and Al Watani, Al Raha Gardens and Al Falah in Abu Dhabi. Our project management fee based pipeline is set to develop further with an increase in activity at Abu Dhabi Plaza in Astana, Kazakhstan which we are developing on behalf of the Government of Abu Dhabi, as well as the Zone K residential project on Yas Island.
As of 31st December 2013, total assets were AED7?43billion and gearing /net debt to equity/ was 58 percent, compared to 144 percent a year earlier. Aldar continues to maintain a strong cash position with AED3?8 billion of cash and available liquidity at the end of the year.
Aldar has been focussed on reducing the cost of borrowing, extending its maturity profile and lowering its leverage levels post the completion of the merger with Sorouh. During the fourth quarter, Aldar raised US$750million via a landmark five-year Sukuk. The transaction was priced very competitively at a fixed profit rate of 348?4 percent and proceeds were used to repay debt and extend the company s debt maturity profile.
The successful Sukuk issuance followed significant ratings upgrades, with Moody s raising its long-term debt rating by four notches during 2013 to Ba1, with a positive outlook, and Standard and Poor s upgrading Aldar by two notches to BB.
Abu Dhabi-based Aldar Properties PJSC is one of the largest developers in the Middle East and North Africa region, with US$12billion of assets. The company has developed some of Abu Dhabi s most iconic and complex projects, from the Formula 1 facilities on Yas Island to the thriving new Shams Abu Dhabi community on Al Reem Island.