Aldar Properties reported full-year profit that beat analyst estimates after the company sold more land and properties to the state.
Net income was Dhs642.5 million ($175 million), compared with a year-earlier loss of Dhs12.7 billion, the company said in a statement. That beat Dhs494 million estimate, the average of eight analyst estimates compiled by Bloomberg. Revenue jumped to Dhs6.74 billion from Dhs1.79 billion, mainly from sales of assets to Abu Dhabi’s government.
Aldar, which is building thousands of homes and offices in Abu Dhabi, received Dhs36 billion in government support last year.
“We are a more efficient organisation that is well-positioned to capitalise on market opportunities and drive shareholders’ returns by deploying capital selectively into key projects,” Chairman Ali Eid Al Mheiri said in the statement.
Aldar was unchanged at 99 fils in Abu Dhabi trading on Monday. The shares dropped 18 per cent in the last six months, giving the company a market value of Dhs4.04 billion.
In light of these results, the Board of Directors have recommended a cash dividend of Dh0.05 per share for shareholder approval at the AGM.
During the year, Aldar completed 1,930 residential units including the Al Zeina and Al Muneera communities at Al Raha Beach, one of the first new beachfront residential developments in Abu Dhabi, and the first phase of Al Gurm, a luxury residential development.
Recently, Aldar Properties and Sorouh Real Estate Co led gains in Abu Dhabi’s real estate stocks on investor speculation the emirate’s biggest developers may next week report improved full-year results. From gulftoday