Aldar's 2010 Financial Results Reflect Severity of Abu Dhabi's Real Estate Slowdown

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(ABU DHABI, UAE) -- Aldar Properties PJSC, Abu Dhabi's property development, investment and Management Company, yesterday announced its full year results for 2010, reporting a loss of $370 million before impairments and fair value losses. The loss for the year, after recognizing the impairment and fair value losses, was $3.46 billion. In 2009 Aldar's profit was $228 million.

With developments under construction worth $5.218 million at year end, 2010 saw continued project delivery. Al Bandar, the first residential development within Al Raha Beach, was handed over to residents in Q3 and Al Gurm, the luxury residential development, saw the delivery of 9 villas in Q4.

HQ, the international grade A office building, was completed in Q4 of 2010, with long leasehold tenants including ATIC, Global Foundries, and Abu Dhabi Insurance Authority signing during the year. At Central Market, the Souk opened in early Q3 and continued progress was made across the development.

At Yas Island, Yas Links Golf Course, opened in the first quarter and was named one of the top 10 new international courses in the world by Golf Magazine. Ferrari World Abu Dhabi opened in November and has become one of the most popular leisure destinations in the region.

Aldar generated revenues of AED 1,791.1 million (2009: AED 1,979.3 million) in 2010 from a range of sources including property sales, property development and management fees and revenues from other operating businesses. The percentage of contribution from these recurring revenues comes as a consequence of assets being completed and being used and is likely to become a growing feature of the Aldar business in times to come.


"Despite the challenging market conditions that prevailed in 2010, Aldar forged ahead with its commitment to delivering high quality developments and infrastructure that will have a positive long term impact for Abu Dhabi. We have also put in place new financial framework, focused on strengthening the capital structure and ensuring the business has a sustainable future," said Chairman Ahmed Al Sayegh.

He added, "This framework will enable Aldar to build on its experience as a strategic developer for Abu Dhabi focused on the creation, ownership, and operation of quality residential, commercial, retail, leisure and hospitality, and educational establishments. It will continue to adopt a measured approach to development, adapting to prevailing market conditions."

 

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