Abu Dhabi’s Aldar 2020 net profit beats forecasts as ramps up projects

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DUBAI- Abu Dhabi’s largest real estate developer, Aldar Properties, reported on Sunday 2020 net profit of 1.932 billion dirhams ($526 million), marginally higher than the prior year and beating analysts’ expectations on strong development sales.

Analysts had estimated 1.705 billion dirhams in net profit, according to Refinitiv data. Aldar posted a net profit of 1.925 billion dirhams in 2019.

Aldar’s performance was boosted by strong development sales and an increased ramp-up of development management projects.

Its fourth quarter net profit was 729 million dirhams, up 28% from a year prior.

Aldar’s shares are up 12.3% this year, closing at 5,666.09 dirhams on Sunday. They fell slightly, by 0.6%, in 2020 to end the year at 5,045.32 dirhams after hitting a low of 3,323.35 dirhams in March.

Aldar’s board recommended a 0.145 dirham per share cash dividend for the year 2020, unchanged from last year.

It had a cash balance of 3.3 billion dirhams at year-end, driven by 4 billion dirhams from development collections. It also had 4 billion dirhams in undrawn credit facilities at year-end.

Aldar said 85% of its workforce chose to get vaccinated in under a month.

($1 = 3.6729 UAE dirham)

(Reporting by Yousef Saba; editing by Emelia Sithole-Matarise) ((Yousef.Saba@thomsonreuters.com; +971562166204))