Aldar Properties PJSC (ALDAR), the Abu Dhabi developer that cut 24 percent of its workforce last week, reported a third-quarter profit that beat estimates on increased revenue from home and land sales.
Net income totaled 144 million dirhams ($39 million) compared with a year-earlier loss of 731.2 million dirhams, the company said in an e-mailed statement today. That beat 46.5 million dirhams, the average of three analyst estimates compiled by Bloomberg. Revenue jumped sixfold to 3.1 billion dirhams.
Aldar boosted income from residential property sales after completing the Al Gurm, Al Bandar and Al Raha Gardens developments and handing over properties to owners, it said. Abu Dhabi’s biggest developer also generated income of 2.7 billion dirhams from land sales and doubled rental income from offices and other commercial properties in the first nine months of the year.
Property values and rents slumped in the United Arab Emirates after banks curtailed lending and speculators left the market during the global recession. Government backed companies in the U.A.E. have announced delays to projects including local branches of the Louvre and Guggenheim museums and a low-carbon alternative energy city.
Aldar said on Oct. 31 it will cut 105 jobs as it restructures. The Abu Dhabi government in January agreed to buy assets including a Ferrari theme park and convertible bonds from the developer for 19.2 billion dirhams to help it pay creditors.
Aldar shares advanced 1 percent to 1.03 dirhams at the close today in Abu Dhabi. The stock has plunged 55 percent this year.