Aldar reports a 150 per cent rise in net profit on back of Abu Dhabi Government assistance programme.
Abu Dhabi's Aldar builds profits with Government support
Aldar has reported a 150 per cent increase in net profit during the first quarter, as government rescue packages worth almost $10 billion continue to prop up the developer.
Abu Dhabi's flagship property firm reported a net profit of Dh478.2 million in the first three months of this year, up 153 per cent on the same period in 2011, when it made Dh189.1 million.
Sales stood at Dh3.59 billion for the quarter, up from Dh784.7 million during the same period in 2011.
Around Dh2.2 billion of Aldar's revenues were made up of sales contracts with the Abu Dhabi government and related entities, the company said.
Aldar has received government support worth billions of dirhams, as the developer - like many others in the UAE - was hit hard by the downturn.
In December, Aldar said it had sold some of its prized assets, including Central Market and hundreds of homes on Al Raha Beach, to the Abu Dhabi Government for Dh16.8 billion.
Under a separate deal announced in January 2011, the Abu Dhabi Government said it would buy Dh10.9bn of the company's Yas Island infrastructure assets, including the Ferrari World theme park, as well as Dh5.5bn of residential units and land. The company also issued a Dh2.8bn convertible bond.
The total assistance provided by the Abu Dhabi government amounts to around Dh36 billion ($9.8 billion).
Aldar said today that it has handed over to the government 606 completed residential units and land plots at the Al Raha Beach development, under an agreement signed last year.
"Further unit handovers as part of the Government sales agreements signed in 2011 are expected to take place over the course of 2012," the company said in a statement.