(MENAFN - Khaleej Times) Abu Dhabi's biggest real estate developer, Aldar Properties, made a net profit of Dh417.9 million in the second quarter of the year - a 228 per cent growth - on strong revenues due to the handover of its properties.
The revenue of the realty developer was even stronger at 497 per cent, hitting Dh4.631 million in the April-to-June period over Dh775.7 million a year ago.
The property developer handed over 1,058 residential units on its Al Raha Beach units.
In the remaining part of the year, Aldar's delivery programme will "focus on the delivery and handover of the remaining units and land plots at Al Raha Beach", according to an issued statement.
"Aldar's results clearly demonstrate its strong financial position. Impressive quarterly performance has been driven by the delivery of a substantial volume of units to our customers including the Government of Abu Dhabi," Aldar chairman Ali Eid Al Mheiri said.
Strong revenues mean a strong cash and liquidity position. At the end of the period, cash balances were Dh2.459 billion, with Dh3.2 billion of available liquidity from the credit facility with the National Bank of Abu Dhabi, providing the company with ample working capital and liquidity to deliver on its business plan.
Aldar's ongoing programme of debt reduction continued during the quarter with repayments totalling Dh4.3 billion, including the early retirement of a Dh1.9 billion term loan, bringing total borrowings down to Dh14.358 billion against Dh18.295 billion in the same period a year ago.
In the remaining part of year, "Aldar will continue to deliver strong revenues and predictable cash flows. This stability enables us to focus on our long-term strategy- to remain Abu Dhabi's pre-eminent developer," Al Mheiri said.
Aldar benefits from highly predictable and stable ongoing cash flows with Dh12 billion cash still to be received from the three main asset sale agreements signed with the Government of Abu Dhabi between 2009 and 2011.
"The government asset sale agreements also provide a source of stable earnings, including Dh3.6 billion of revenue still to be recognised relating to serviced land sales at Al Raha Beach. These contracted sales provide the foundation for Aldar's strong ongoing revenue and cash flow visibility over the coming quarters," the company said.
The chairman hinted of "a strong pipeline of development projects to deliver over the second half of the year and into 2013."
"We look forward to contributing profitably to Abu Dhabi's future real estate pipeline."
In the period, Aldar sold 680 units and is awaiting its completion and handover. Aldar's remaining inventory for sale consists of 391 units, principally at Al Raha Beach and Reem Island.
Recurring revenues from investment properties and operating businesses, increased 12 per cent to Dh338.6 million in the second quarter.
In addition to its for-sale inventory, Aldar has allocated 378 residential units at Al Raha Beach to form a new leasing portfolio during the last quarter. Of these, 191 are leased, including 155 units to Aldar Academies.