Abu Dhabi-based Aldar Properties, a major real estate developer, has posted a net profit of Dh1.25 billion ($340 million) for the second quarter (Q2) of the year, as against Dh418 million during Q2 2012, marking an increase of 200 per cent.

The profit for the quarter was principally driven by the handover of land plots and residential units, steady growth from recurring revenue assets and a one-time gain on the acquisition of Sorouh’s assets offset by certain asset impairments.

Net profit for the half year was Dh1.41 billion up 57 per cent (H1 2012: Dh896m).

Revenues of Dh1.26 billion during Q2 were generated from the on-going handover of serviced land at Al Raha Beach East, the start of residential unit handovers at Tala Tower, revenues from national housing projects and recurring income from the investment properties portfolio.

H1 revenues amounted to Dh2.89 billion (H1 2012: Dh8.22 billion). Half year revenues were less than the corresponding period last year as the company handed over 479 units in the first half of 2013 compared to 1,058 units in the first half of 2012, it said in a statement.

Recurring revenues from investment properties, hotels and schools were up 10 per cent to Dh767m during the first half (H1 2012: Dh699m).

Total assets grew 36 per cent from Dh32 billion to Dh43.7 billion owing to the merger. The merger with Sorouh completed during the second quarter.

Gearing (net debt to equity) reduced to 60 per cent from 144 per cent. The cash position remained strong with Dh5.4 billion of cash and available liquidity.

“The merger of the two companies is already delivering significant benefits.  This includes a strengthened financial position as shareholders equity has almost doubled, gearing has more than halved and the business has a more balanced and diversified portfolio,” said Abubaker Seddiq Al Khoori, chairman of Aldar Properties.

“Good progress is being made with the integration of the merger and we have already commenced the realisation of financial synergies by reducing the company’s cost of borrowing.

“Aldar is well-positioned to capitalise on the solid growth fundamentals of the Abu Dhabi economy. We will be handing over more than 7,400 units to customers over the next 12 months, reflecting the exciting growth ahead.  This strong pipeline, supported by our steadily growing recurring revenues, leaves us well placed to generate sustainable returns for our shareholders,” he added. – TradeArabia News Service