Aldar Properties swings to Q2 profit

ABU DHABI: Aldar Properties, the indebted developer rescued by a $5.2 billion bailout by Abu Dhabi, swung to a second quarter net profit, helped by sales and rental income, and raised an additional 1.4 billion dirham ($381.2 million) loan from banks.

The builder of the Yas Marina Formula One circuit made a second-quarter net profit of 127.3 million dirhams ($34.6 million) compared with a loss of 475.3 million dirhams in the same period last year, it said in a statement on Abu Dhabi's bourse on Thursday.

The profit missed estimates from two analysts who forecast an average of 169 million dirhams in a Reuters poll in July.

Aldar raised an additional financing of 4.28 billion dirhams in the first half of year, which included a new loan worth 1.4 billion dirhams from local banks in the second quarter, a company spokesman confirmed after the announcement of the results.

The remaining financing was raised through a 2.8 billion dirham mandatory convertible bond issued to Mubadala, Abu Dhabi's investment vehicle.

Revenues for first half were 1.56 billion dirhams compared to 427 million dirhams for the same period last year. Second quarter revenues were not provided.

"The first half of 2011 has seen a continued focus on our core business, the prioritisation of current projects and cash flow management," Ali Eid al Mehairi, chairman of Aldar said in the statement.

The developer said it made 832.1 million dirhams from the sale of completed homes and land and 189.6 million dirhams as rental income from investment properties.

Moody's in June cut Aldar's credit ratings by two notches and said it was no longer classifying the firm as a government related-issuer, citing uncertainty over future government support.

Shares of Aldar ended 1.6 percent higher at 1.3 dirhams a share on the Abu Dhabi bourse. The results were announced after the markets closed.

Copyright Reuters, 2011