The full-year 2015 net profit climbed to AED2.56bn, up from AED2.266bn in the previous year. The fourth-quarter profit for the Abu Dhabi-listed realtor grew 4 per cent to AED750m, the company said in a stock exchange filing to Abu Dhabi Securities Exchange.
Last year was a successful year for Aldar, with development sales of AED3bn and gross profit from recurring revenue up by 49 per cent, chief executive Mohamed al-Mubarak said in a statement. Our focus on stabilising recurring revenue assets has significantly improved the quality of our earnings and provided clarity on long-term cash flow.
Gross profit from recurring revenues in the fourth quarter increased by 35 per cent to AED447m, which compares to AED332m for the three months ending in December 2014.
The full-year overall revenues, however, slid in 2015.
Al-Mubarak said Aldars revenues in 2014 were primarily derived from the handover of developments, while last year the focus had been on the strengthening of the companys portfolio of properties, yielding recurring revenues. This change in revenue-mix explains the reduction of 30 per cent in overall revenues, he added.
The Abu Dhabi government-controlled developer is behind multi-billion dollar retail, commercial, leisure, residential and mixed-used developments in the UAEs Capital and has managed to reduce its gross debt to AED5.947bn, a 35 per cent slide from AED9.17bn reported at the end of 2014.
The reduction of debt is in line with the companys policy for debt to be between 35 per cent – 40 per cent of the value of the investment properties and operating businesses, Al-Mubarak explained.
The companys flagship retail development Yas Mall reported 96 per cent occupancy last year. Its residential portfolio recorded 98 per cent occupancy while the occupancy for its office and hotels developments stood at 95 per cent and 79 per cent, respectively.
The company has launched four residential projects, of which sales have been completed on three. Aldars board has recommended a 10 fills per share dividend for 2015, which represents an 11 per cent increase year-on-year, according to the statement.