(MENAFN- Khaleej Times) Abu Dhabi's biggest realty firm Aldar Properties' net profit fell 68 per cent in the first quarter of the year to Dh154.3 million.
Revenues declined 55 per cent in the period Dh1.624.5 billion driven by the handover of land plots and 410 residential units and the sale of office the Al Noor office building at Al Raha Beach.
The company recognised Dh1.217 billion in revenues from its development business. Recurring revenues from investment properties and operating businesses were up 12.9 per cent to Dh406.7 million.
Rental income from investment properties, which include Aldar's office, residential and retail portfolio, was up 15 per cent to Dh172.9 million on improved occupancy levels in the office and community retail portfolios. Revenues at Aldar's operational businesses, such as operative villages, schools and hotels, also increased, generating grew 11.8 per cent to Dh233.8 million on the back of improved occupancy and robust performance of the schools and leisure assets.
The company's liquidity position remains very strong with Dh3.2 billion in unrestricted cash and Dh4.0 billion of undrawn and available liquidity from our revolving credit facility. Shareholder of Sorouh and Aldar had approved the merger of the two companies to create a stronger and more diversified company to take advantage of future opportunities in Abu Dhabi and other regional markets in the coming years. The integration planning is already underway and it is currently anticipated that the merger will become effective in June 2013.
Ali Eid AlMheiri, chairman of Aldar Properties, said: "The consistent delivery to customers that has characterised Aldar's performance over the past year has continued this quarter across a number of our key developments. From next quarter, we begin our journey as a merged company and look forward to building on our strong foundations to deliver sustainable value to shareholders over the long-term."
The handover of Al Bateen Park is now almost complete and the handover of the Al Ward development at Al Raha Gardens began during the quarter and is well advanced. A total of 410 residential units were handed over to customers during the quarter.
The development of Yas Mall, Aldar's 233,000 sqm flagship retail development on Yas Island, proceeds on programme.
Construction continues on schedule with concrete and block work substantially complete across all of the mall's structures and finishing progressing well. The leasing programme continues, with over 60 per cent of the mall pre-leased and the focus remaining on optimising the tenant mix.
Al Falah, a housing project for Emiratis, is entering final stages of construction of phases 3 and 4, and is on schedule for third quarter handover of 2700 units. At quarter-end, 58 out of 102 retail units at the Village Centres had been handed over to tenants to begin fit out.
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