May 12 (Bloomberg) -- Aldar Properties PJSC said first-quarter profit almost tripled, beating analyst estimates, as sales to the government boosted revenue at Abu Dhabi’s biggest developer.
Net income surged to 453 million dirhams ($123 million) from 154.3 million dirhams a year earlier, the company said in a statement today. That surpassed 346 million dirhams, the mean of three analyst estimates compiled by Bloomberg.
Aldar, which received billions of dirhams in government bailouts after Abu Dhabi’s property market collapsed, has focused on reducing debt following its state-backed purchase of competitor Sorouh Real Estate Co. in June. The developer repaid 2.8 billion dirhams, or 20 percent of its gross loans, in the first quarter, Chief Financial Officer Greg Fewer told reporters today.
The company is set to repay a $1.25 billion bond due on May 27 and it isn’t currently planning to issue new debt, Fewer said. “We have over 9 billion dirhams in cash and available liquidity and we are well positioned to meet these obligations,” he said.
Aldar was up 1.8 percent at 3.95 dirhams as of 12:13 p.m. in Abu Dhabi. The stock has gained 43 percent this year, giving the company a market value of 31 billion dirhams.
First-quarter revenue grew 6.2 percent to 1.72 billion dirhams as the government paid for completed infrastructure assets. The company said it generated 75 million dirhams of sales from the completion of apartments in the Gate Tower.
Recurring revenue rose 22 percent to 497 million dirhams in the quarter and the amount will climb next year after the opening of Yas Mall, the CFO said. Aldar will complete sales of 1,400 homes in the next two quarters and the company is set to collect 4.3 billion dirhams from the government for asset sales already agreed, he said.
Revenue from newly started projects won’t show up in the company’s results until 2016 and 2017, while growth next year will be driven by the recurring income, the CFO said.
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