ABU DHABI: Abu Dhabi's Aldar Properties is seeking to refinance debt, including a $1.2 billion bond maturing next year, after its quarterly earnings surged on the back of a one-off gain from the acquisition of its main rival in the oil-rich emirate.
Aldar and Sorouh, Abu Dhabi's No 1 and 2 developers, consolidated operations earlier this year in a state-backed deal after property prices in the emirate tumbled by over 50 percent since the global financial crisis in 2008.
Both firms rely heavily on housing contracts awarded by the government.
The developer, which has outstanding liabilities of about 14 billion dirhams or $3.81 billion is looking to refinance debt, Chief Financial Officer Greg Fewer said in a conference call on Wednesday.
"We will be requesting many discussions with banks on various debt, including the $1.2 billion debt maturing next year," Fewer said.
The developer made a second-quarter net profit of 1.25 billion dirhams or $340.3 million, compared with 418 million dirhams in the same period in 2012, the company said in its first earnings announcement after the merger completion in June.
Quarterly earnings included a one-time gain of 2.6 billion dirhams from combination of its business with Sorouh, Aldar said.
However, revenue for the quarter dropped to 1.3 billion dirhams from 4.6 billion dirhams in the prior-year period.
The developer booked provisions, impairments and write downs of 1.1 billion dirhams in the quarter.
Aldar said it would handover more than 7,400 units in next 12 months. Its shares have more than doubled year-to-date on the back of Sorouh merger.
The stock was not trading on Wednesday due to Eid holidays in the United Arab Emirates. (Reuters)
