Abu Dhabi developer fails to meet forecasts, blaming the performance on the UAE鈥檚 weak property market

Abu Dhabi developer Aldar Properties posted a 拢55m loss for the first quarter of the year in results that were worse than analysts鈥� forecasts. Aldar reported a net loss of 314.2 m dirhams (拢55m) compared with profit of 888.6m dirhams in the same quarter in 2009, which it blamed on the UAE鈥檚 weak property market. Analysts had forecast average net profit of 332 million dirhams for the first quarter of 2010.

Turnover in the first quarter was 227m dirhams, down from 496.6m dirhams a year-ago. Aldar said in a statement: 鈥淭he 54.3% decrease was mainly due to lack of property sales.鈥�

Aldar has slowed down the pace of development of its flagship project, the 拢13bn Al Raha Beach scheme, which amounts to building a city for 120,000 people on the outskirts of Abu Dhabi鈥檚 city centre. The developer has a joint venture with Laing O鈥橰ourke and although both sides deny it has been terminated, it is widely thought to have been reduced in scope.

Ahmed Al Sayegh, chair of Aldar Properties, said: 鈥淐onditions are challenging but we were encouraged by the range of new projects recently announced, including a major infrastructure project for Al Ain Municipality, and remain fully committed to our mandate of playing its part in the Plan Abu Dhabi 2030.鈥�

In March, Aldar agreed a deal with Masdar to take over the developer鈥檚 role on a delayed Foster + Partners scheme within the $22bn Abu Dhabi project to build the world鈥檚 most sustainable city.

Topics