Aldar swings to Q1 profit on asset sales
Abu Dhabi, May 7, 2011
Aldar Properties, the struggling developer rescued by a $5.2 billion bailout by Abu Dhabi last quarter, returned to profit, after it booked sales of assets, including the Ferrari World theme park.
The builder of the Yas Marina Formula One circuit posted a first-quarter net profit of Dh189.1 million ($51.5 million) compared with a loss of 314.2 million in the same period last year, it said in an email statement.
Revenue jumped to Dh784.7 million from Dh227 million a year earlier, it said.
Shares of Aldar closed 2.5 percent lower on the Abu Dhabi bourse before the results were announced.
The developer, which ended a five-quarter losing streak, said it booked the sale of Ferrari World Abu Dhabi and related assets to the government of Abu Dhabi in the quarter.
It also issued planned mandatory convertible bonds of Dh2.8 billion in March to state-owned investment vehicle Mubadala.
Revenues also came from the sale of completed properties in Al Gurm and Al Bandar residential communities and from the performance of operational assets including the seven Yas Island hotels in Abu Dhabi.
The company ended the quarter with Dh6.2 billion in cash and bank balances.
Aldar's chief executive had said last month that he did not foresee any further impairments on its property portfolio in the near future, and will return to profit in 2011.
The developer's fourth-quarter loss amounted to Dh11.14 billion.-Reuters