Aldar Properties PJSC, Abu Dhabi’s leading property development investment and management company, in a press release Monday, announced its financial results for the year ended 31 December 2011 reporting a net profit for the year of AED 642.5 million compared to a loss of AED 12,658.4 million for same period last year. This has led to an earnings per share of AED 0.15 compared to a loss per share of AED 4.39 for the previous year.

Revenue for the year increased to AED 6,742.6 million compared to AED 1,791.1 million for the year 2010. The Company recognised AED 5,435.2 million (2010: AED 905.4 million) from the sale of land plots and completed residential units and project management fees. The increase was primarily due to revenue from land sales to the Government supplemented by increased sales of residential units.

Recurring revenues increased by 48% to AED 1,307.4 million (2010: AED 885.7 million). Rental income from investment properties, which include Aldar’s commercial office and retail portfolio, increased to AED 540.9 million (2010: AED 325.0 million) and operational businesses such as schools and hotels generated AED 766.5 million (2010: AED 560.7 million).

The Company has also written down the value of certain assets in line with prevailing market values and upon further business reviews undertaken over the course of the year. Accordingly, appropriate impairments, provisions and fair value losses of AED 3,030.3 million were recognised during the year.

Aldar ended the year with AED 4,157.7 million in cash and bank balances (2010: AED 2,431.5 million) and a net reduction in total borrowing of AED 14,319.4 million.

Net assets increased by 67% to AED 7,093.6 million compared to AED 4,246.8 million at 31 December 2010. The increase is contributed principally by the profit for the year and the conversion of AED 2,106 million of the AED 2,800 million convertible bond issued to Mubadala Development Company during 2011.

In light of these results, the Board of Directors have recommended a cash dividend of AED 0.05 per share for shareholder approval at the AGM.

OPERATIONS During the year, Aldar completed 1,930 residential units including the Al Zeina and Al Muneera communities at Al Raha Beach, one of the first new beachfront residential developments in Abu Dhabi, and the first phase of Al Gurm, a luxury residential development. The completion of Al Bateen Park, a residential unit development in the heart of Abu Dhabi and Al Ward, a precinct within the Al Raha Gardens community, is anticipated in 2012.

The fee-based development portfolio grew with the signing of new development management contracts for Abu Dhabi Plaza Kazakhstan, Yas Island Waterpark and a construction management agreement for Central Market. These join existing contracts for Al Falah, a 4,857 villa Emirati Housing development for the Abu Dhabi Government, Cleveland Clinic Abu Dhabi, an USD 1.9 billion healthcare facility for Mubadala and the Masdar Institute of Science and Technology.

A range of properties held for investment were also completed and fully let in 2011 adding 76,000 sqm of new retail, including IKEA development on Yas Island, Gardens Plaza and Motor World, a custom-designed destination for new and used car showrooms and servicing facilities in Abu Dhabi. The construction contract was awarded for Yas Mall, a major retail development on Yas Island. With 235,000 sqm of retail trading area, Aldar has already leased over 40% of this development that will open in the fourth quarter of 2013.

In 2011, Aldar Academies delivered three new schools - Al Bateen Secondary School, Al Mushrif School and Al Ain International School. Aldar Academies now operates six schools with capacity for approximately 5,500 pupils in Abu Dhabi and Al Ain.

Commenting on the results, Ali Eid AlMheiri, Chairman of Aldar Properties, said: "In 2011, Aldar delivered major milestones from its development activities. We also undertook a number of financial initiatives to return Aldar to long term growth and ensure ongoing value creation for all our stakeholders. We are entering 2012 in a stronger financial position with lower debt levels and stable cash flows. We are a more efficient organization that is well positioned to capitalise on market opportunities and drive shareholders returns by deploying capital selectively into key projects."

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