Aldar Properties, Abu Dhabi's flagship developer, yesterday revealed it made a net profit of Dh642.5 million (US$174.9m) last year, reversing a loss of Dh12.6bn in 2010.
Revenue last year was buoyed by sales of land and property to the Government, increasing overall to Dh6.74 billion from Dh1.79bn in the previous year.
"In 2011, Aldar delivered major milestones from its development activities. We also undertook a number of financial initiatives to return Aldar to long-term growth and ensure ongoing value creation for all our stakeholders," said Ali Eid AlMheiri, the chairman. The company also announced it would pay a dividend to shareholders.
"We are a more efficient organisation that is well positioned to capitalise on market opportunities and drive shareholders' returns by deploying capital selectively into key projects," he said.
The results led to earnings per share of 15 fils compared with a loss per share of Dh4.39 for the previous year and prompted management to pay a dividend of 5 fils per share. Revenue from land sales, completed properties and project management was Dh5.4bn, while revenue from investment properties, hotels and schools was up 48 per cent to Dh1.3bn.
The developer said it had written down a number of assets to reflect prevailing market conditions, with Dh3bn in impairments, provisions and fair-value losses recognised overall last year.
During the year, Aldar completed 1,930 residential units including Al Zeina and Al Muneera communities at Al Raha Beach.
The developer added 76,000 square metres of retail space, including the Ikea development on Yas Island, the Gardens Plaza and Motor World.
Aldar has been helped by the Abu Dhabi Government in the past 12 months after its assets were hit hard during the property market downturn. It is in the process of selling some of its assets to the Government for Dh16.8bn.
The deal includes the Government paying Dh5.7bn for Central Market, the city centre souq designed by Norman Foster, and taking on the estimated completion cost of Dh2.6bn.
In January last year, the company also announced a funding plan under which the Abu Dhabi Government would buy Dh10.9bn of the company's Yas Island infrastructure assets, including the Ferrari World theme park and Dh5.5bn of residential units and land.
The company issued a Dh2.8bn convertible bond to Mubadala Development, a strategic investment company owned by the Abu Dhabi Government, and in October laid off 105 employees, about 25 per cent of its staff.
Aldar's stock movement has reflected a tumultuous past 18 months and now trades at 99 fils. The stock has gained 7.6 per cent this year but is still a long way from its peak of more than Dh13 in June 2008.
Net assets increased last year by 67 per cent to Dh7bn, against Dh4.2bn in the previous year, on the back of greater profits and the conversion of the convertible bond issued to Mubadala.
