Abu Dhabi’s Aldar Properties Q4 profit tumbles

Aldar Properties, the state-linked builder of Abu Dhabi’s Formula One circuit, said it plans to spend Dhs5.4 bn ($1.47bn) over the next two years after reporting an 80 percent drop in fourth quarter profit.

The results come against a backdrop of a slowing economy and property market in the oil-rich capital of the United Arab Emirates.

Aldar made a net profit attributable to owners of Dhs141.0m ($38.4m) in the three months to December 31, compared with Dhs727.9m a year earlier, CFO Greg Fewer said on a conference call on Thursday.

A one-time charge of Dhs495m in the fourth quarter, representing 3 per cent of the asset management portfolio, impacted Aldar’s bottom line, he said.

SICO Bahrain forecast that Aldar would make a quarterly profit of Dhs628.12m.

Aldar’s full-year profit attributable to owners was Dhs2bn, compared with Dhs2.78bn in 2016, he said.

“The overall capex programme stands at Dhs5.4bn (which) will run approximately 24 months, but we add to this as we continue to announce new contracts and launch new projects,” Fewer said.

Aldar’s capex in 2017 was about Dhs1.6bn, he said.

Aldar is also evaluating refinancing of its $750m sukuk that matures later this year, Fewer said, adding they are confident of accessing markets.

The company’s full-year revenue totalled Dhs6.18bn compared to Dhs6.23bn in the prior year.

With Dhs3bn of contracts awarded in 2017 and some 7,000 units under construction, Aldar expects strong sales this year as it launches new projects, Talal al Dhyebi, chief executive, said on the conference call.

“We have bold plans for 2018, exciting development launches and are seeking opportunities to grow our portfolio in existing and new markets.”

Aldar’s board proposed paying a dividend of Dhs0.12 per share for 2017 versus Dhs0.11 per share in the previous year.