Aldar revenue quadruples for return to profit

Aldar Properties, Abu Dhabi's largest developer, has made good on a promise to return to profitability in the first quarter, reporting a net profit of Dh189.1 million (US$51.4m).

Revenue jumped to Dh784.7m, more than four times the amount for the same period last year, the company reported.

Most of the revenue, Dh433.3m, came from sales of completed properties at Al Gurm and Al Bandar, the company said.

Aldar reported a net loss of Dh314.2m in the first quarter of last year on revenue of Dh227m.

Its share price surged in recent days in anticipation of good news, rising 4 per cent to Dh1.59 on Wednesday, before closing at Dh1.55 yesterday. The stock's recent high was Dh2.50 a share on December 9.

The company posted a Dh12.65 billion loss last year after writing down of the value of its assets.

In November, Sami Asad was elevated from chief operating officer to chief executive, replacing John Bullough who retired.

Two months later Aldar announced a funding plan under which the Abu Dhabi Government would buy Dh10.9bn worth of the company's infrastructure assets on Yas Island, Dh5.5bn of residential units and land.

The company also issued a Dh2.8bn convertible bond to Mubadala Development, a strategic investment company owned by the Abu Dhabi Government.

Last month Ahmed Ali al Sayegh, who has served as chairman since the company was launched in 2005, did not file papers for a new term on the board. Mr al Sayegh was replaced as chairman by Ali Eid al Mehairi, the head of Mubadala Infrastructure.

The developer is expected to release about 3,000 homes in Al Raha this year. Last month companies started moving into HQ, Aldar's coin-shaped tower in Al Raha.

kbrass@thenational.ae