April 28 (Bloomberg) -- Aldar Properties PJSC, the Abu Dhabi developer bailed out by the government last year, said first-quarter profit more than doubled as the company delivered more residential units and boosted revenue from land sales.
Net income climbed to 478.2 million dirhams ($130 million) from 189.1 million dirhams, the company said in an e-mailed statement today. First-quarter revenue surged to 3.59 billion dirhams from 784.7 million dirhams in the year-earlier period, the developer said.
Aldar, which is building thousands of homes and offices in Abu Dhabi, received 36 billion dirhams in government support in 2011 after the emirate’s property market slumped. The company and smaller rival Sorouh Real Estate Co. are exploring a merger with the support of Abu Dhabi’s government, which owns stakes in both. Property prices in the emirate slid by 50 percent after the global credit crisis caused banks to tighten lending and speculative buyers fled the market.
The developer recognized 3.23 billion dirhams in the first quarter “from the sale of land plots and completed residential units and development management fees,” according the company statement. Of this, 2.2 billion dirhams was related to sale contracts signed in 2011 with the government of Abu Dhabi and related entities, it said.
Al Raha Units
“These results reflect the significant deliveries of residential units and land plots at Al Raha Beach that began in the quarter and will continue through the year, supported by strong recurring revenues from our operating businesses,” Chairman Ali Eid Al Muheiri said in the statement.
Aldar handed over 606 residential units at Al Raha Beach and seven at Al Gurm during the first quarter, according to the company statement. First-quarter recurring revenue increased 15 percent to 360.1 million dirhams.
The company’s operational businesses, which includes schools and hotels, had revenue of 148.6 million dirhams in the first quarter compared with 137.9 million dirhams in the year-earlier period. Rental income from investment properties increased to 150.8 million dirhams from 123.3 million dirhams.
Aldar plans to tap the debt market this year to finance new projects, deputy Chief Executive Officer Mohammed Al Mubarak said this month. On April 17, the developer said it raised a 4 billion-dirham revolving credit facility from National Bank of Abu Dhabi PJSC.
After the company received the loan, Standard and Poor’s raised Aldar’s credit rating to B+, the fourth-highest non-investment grade, from B.
The shares dropped 1.7 percent to 1.13 dirhams in Abu Dhabi on April 26. They have jumped 23 percent percent so far this year, giving the company a market value of 4.6 billion dirhams.
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