UAE- Aldar Q3 profit surges 98%

(MENAFN- Khaleej Times) Third quarter revenues were Dh1.17 billion, against Dh1.6 billion in the third quarter of the last year, generated from the sale of a Yas Island land plot, the on-going handover of serviced land at Al Raha Beach East, handovers of residential units at Tala Tower, revenues from fee based developments and construction revenues. Overall revenues in the comparable period last year were boosted by significant handovers of land plots and residential units at Al Raha Beach. Third quarter recurring revenues were up 54 per cent quarter-on-quarter to Dh471 million, driven by the expansion of the investment property portfolio that now benefits from a full quarter of revenue contribution from Sorouh's assets. At the period end total assets were Dh44.8 billion. In recent weeks Moody's and Standard & Poor's (S&P) both significantly upgraded their ratings on the Company. Moody's moved Aldar three notches from B1 to Ba1 with a positive outlook. This was on top of the one notch upgrade in July. S&P raised Aldar to BB, a two notch upgrade. On merger with Sorouh, the property giant said: "Good progress is being made on the integration of the two businesses, which is on track to be substantially complete by year end. The capturing of synergies is progressing well with significant financial synergies being achieved.'' Abubaker Seddiq Al Khoori, Chairman of Aldar Properties, said the business continues to deliver excellent results and substantial growth in recurring revenues. "Our commitment to de-leveraging the balance sheet and reducing the cost of borrowing is delivering real value,'' he said. Al Khoori saw greater stability as market fundamentals continue to improve. Home prices in prime segment continued recovery in the third quarter consecutive, improving five per cent in the first quarter, eight per cent the second quarter and another five per cent in the quarter ended September 30. Meanwhile, owners of Aldar Property's The Gate Towers project on Al Reem Island would start receiving the delivery of their apartments within days. The property developer has awarded the Building completion certificates on all residential towers at The Gate Towers. And the delivery of 3,533-units will begin in fourth quarter 2013. Leasing activity will commence in Q4 and there is already significant interest for bulk leases at the development, the realty giant told in a regulatory filing on Thursday to Abu Dhabi Securities Exchange. It said, Tala Tower, the 375 apartment residential tower, was 88 per cent handed over to owners by the end of the third quarter, handover of the balance of units will be done by the end of 2013. The first phase of the 2,130-unit Al Ghadeer development in the eastern region of Abu Dhabi is now being handed over to owners. At Al Rayyana, the DCI tenants have already begun to move into the development. Further leasing activity will commence in Q4 and there is already significant interest for bulk leases at the development. Over 7,000 housing units to be delivered in the next 12 months.