Financial Year 2008 Highlights
Gross revenue rises 335.7 percent to AED 5, 345.7 million
Net income increases 77.5 percent to AED 3, 446.7 million
Net asset value up 108.5 percent to AED 16, 032.5 million
EPS grows 26.4 percent to AED 1.39
AED 12, 066.4 million in cash provides ample liquidity to meet financing needs
Developments under construction increased in value by 175.3 percent to AED 22, 934.3
million from AED 8, 332.0 million at end 2007
Aldar Properties PJSC, Abu Dhabi’s leading property development, investment and management company, today announced 2008 full year financial results, and reported a 77.5 percent rise in net income to AED 3, 446.7 million versus AED 1, 941.3 million in 2007. Net asset value was up 108.5 percent to AED 16, 032.5 million.
Net operating income was AED 2, 211.3 million compared to AED 120.1 million the previous year; gross revenue rose by 335.7 percent to AED 5, 345.7 million versus AED 1, 226.8 million. Further revenue of AED 6, 440.1 million was achieved through sales of properties under construction which will be recognised in future periods.
This performance, primarily driven by increased sales revenue (sale of plots of land and residential units), proves the resilience and sustainability of Aldar’s business model, which in 2008 entered a new phase of its evolution, focused on execution and delivery backed by a solid balance sheet.
Ahmed Ali Al Sayegh, chairman of the board of directors of Aldar, said: "2008 was a transformational year for Aldar and the results we announce today reflect the success of our business model and the hard work that has been put into all our developments since the formation of the company in 2005. 2009 will be a challenging year but Aldar is well positioned to meet these new challenges and we are responding to the current environment in a prudent and appropriate manner. We are committed to delivering projects under way and will proceed in a focused and measured fashion with future developments. We are cautiously optimistic about the year ahead and are confident we will meet our long-term strategic and financial objectives and contribute to the success of Abu Dhabi Economic Vision 2030 plan and pursue our goal to build sustainable communities in Abu Dhabi."
Developments under construction increased in value by 175.3 percent to AED 22, 934.3 million from AED 8, 332.0 million at end 2007 as a result of investment in existing and new development projects such as Al Falah, part of the Abu Dhabi government’s housing initiative which very much corresponds to Aldar’s mission to build sustainable communities; and Motor World, which will create a one-stop-shop for automotive related activities and commerce.
A number of projects have been completed and handed over. These include the Yasmina School, which marks a further step in Aldar’s ambition to make world-class education available to Abu Dhabi’s growing young population and 444 villas in the Al Raha Gardens phase II development.
Work and investment continued at pace on projects such as Al Raha Beach, the first parts of which will be delivered later in 2009, and Yas Island, where the Yas Marina Circuit and related facilities, including hotels and marinas, are nearing completion and are on track for the 1 November Formula 1 Etihad Abu Dhabi Grand Prix.
The hike in general and administrative expenses from AED 279.6 million in 2007 to AED 771.2 million in 2008 was due to a focused hiring effort to meet the demands of the growing business, with employee numbers rising from 378 to close to 800 at year-end 2008.
Total financing at 31 December 2008 stood at AED 22, 588.1 million, up from AED10, 508.2 million year-on-year, reflecting the increase in activity over the year. With AED12, 066.4 million in cash and AED 10, 931.9 million in undrawn credit lines, Aldar benefits from a strong financial foundation and with ample liquidity is well positioned to meet its financing needs in the coming year.
Although the fundamentals of the Abu Dhabi market are somewhat different from most others around the globe with demand for a whole range of properties still exceeding current supply, 2009 is likely to be a challenging year for the overall real estate sector. In order to ensure continued success, Aldar is focusing on delivering its announced projects whilst reviewing its cost base carefully to ascertain it enjoys the best possible terms in the prevailing market conditions, as well as taking a measured approach to future developments.
Aldar’s proven business model is flexible and adaptable and able to anticipate and quickly respond to a rapidly evolving market place, and take advantage of all opportunities to pursue value creation for its shareholders.