Aldar Properties today announced its financial results for the third quarter ending 30th September 2014.

The company reported net profit of AED584 million for the third quarter 2014, an increase of 41% compared with AED 413 million in Q3 2013. This was supported by growth in profitability of the recurring revenue assets and Yas Mall valuation following its completion.

Third quarter revenues were up 17% to AED1.37 billion (Q3 2013: AED 1.17 billion), primarily supported by the sale of B2 Tower, handover of units at Gate Towers and increased recurring revenue streams. Recurring revenue in the third quarter was AED526 million, reflecting an increase of 12% over the same period last year (Q3 2013: AED 471 million). This increase was primarily driven by strong leasing activity during the period at Al Rayanna and The Gate Towers which are now fully let one year ahead of schedule.

Revenue for the nine months to 30th September 2014 was AED5.28 billion (YTD 2013: AED4.06 billion). Net profit in the first nine months was AED1.55 billion (YTD 2013: AED1.82 billion including AED1.06 billion net gain on acquisition).

As at 30th September 2014, total assets were AED38.21 billion. Net debt to equity, excluding restricted cash, stood at 38% (31st December 2013: 65%). Aldar continues to hold a strong cash position with AED4.03 billion of cash and bank balances at the end of the third quarter. Gross debt fell 5% during the quarter to AED9.57 billion as at 30th September 2014.

Commenting on the results, Mohammed Khalifa Al Mubarak, Chief Executive Officer of Aldar Properties, said, "This has been a strong quarter that clearly demonstrates the effectiveness of our strategy. Our recurring revenue assets continue to grow, especially with Yas Mall coming on stream and we are well on our way to achieving our recurring income target. This will help smooth out bottom line earnings and underpin our business as we commence a new wave of development projects, which include those announced earlier in the year and a number to be launched over the coming quarters."

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