Aldar Properties, Abu Dhabi's largest developer, has reported a profit of Dh1 billion (US$272 million) for last year, down from Dh1.75bn in 2008. The company lost more than Dh500m in the final three months of last year as soaring costs for opening the key Yas Island project and massive revaluations of its portfolio bit deep into the bottom line. Aldar reported losses of Dh562m in the fourth quarter. Properties under development lost Dh520m of their value in the final quarter of last year while the cost of opening Yas Island wiped another Dh170m from the books.
The company also revealed it has Dh10.3bn of cash on the balance sheet to help it get through the remainder of the downturn. "That gives us the firepower - for another 12 to 18 months," said Shafqat Malik, the chief financial officer of Aldar, adding that the company was reviewing its options for further bond issuances, sales or reducing its expenditures to make it through the slow market. Prices in the capital have dropped by as much as 50 per cent in some areas and buyers have avoided off-plan homes because of a lack of confidence in the ability of developers to deliver on time.
Jones Lang LaSalle, the property consultancy, estimates that just half of the 90,000 homes expected to be finished by 2013 are stalled, and that there is a funding gap of more than Dh50bn for these projects to begin. "I think the challenge for master developers like Aldar and Sorouh is ensuring that those people who they've sold land plots to can actually complete and deliver them," said Chet Riley, an analyst at Nomura Securities.
Sorouh Real Estate, the second-largest developer in Abu Dhabi, announced that its profits had dropped by almost 40 per cent to Dh28.1m in the fourth quarter of the year, compared with the same period in 2008. Aldar's shares shed Dh0.11, or 2.7 per cent, in trading yesterday, closing at Dh3.90. The stock has improved by 64.5 per cent in the past year. The company has sold a large portion of its signature Yas Island project, including the Formula One Grand Prix circuit, to the Abu Dhabi Government.
Mr Malik said the asset sales were part of a "wider economic diversification of Abu Dhabi". "We sold a number of things, including the internal roads, vacuum systems, the marina, the yacht club - and the racetrack," he said. @Email:bhope@thenational.ae
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
Virtuzone GCC Sixes
Date and venue Friday and Saturday, ICC Academy, Dubai Sports City
Time Matches start at 9am
Groups
A Blighty Ducks, Darjeeling Colts, Darjeeling Social, Dubai Wombats; B Darjeeling Veterans, Kuwait Casuals, Loose Cannons, Savannah Lions; C Awali Taverners, Darjeeling, Dromedary, Darjeeling Good Eggs
Results
2.30pm: Dubai Creek Tower – Handicap (PA) Dh40,000 (Dirt) 1,200m; Winner: Marmara Xm, Gary Sanchez (jockey), Abdelkhir Adam (trainer)
3pm: Al Yasmeen – Maiden (PA) Dh40,000 (D) 1,700m; Winner: AS Hajez, Jesus Rosales, Khalifa Al Neyadi
3.30pm: Al Ferdous – Maiden (PA) Dh40,000 (D) 1,700m; Winner: Soukainah, Sebastien Martino, Jean-Claude Pecout
4pm: The Crown Prince Of Sharjah – Prestige (PA) Dh200,000 (D) 1,200m; Winner: AF Thayer, Ray Dawson, Ernst Oertel
4.30pm: Sheikh Ahmed bin Rashid Al Maktoum Cup – Handicap (TB) Dh200,000 (D) 2,000m; Winner: George Villiers, Antonio Fresu, Bhupat Seemar
5pm: Palma Spring – Handicap (PA) Dh40,000 (D) 2,000m; Winner: Es Abu Mousa, Antonio Fresu, Abubakar Daud
MATCH INFO
Uefa Champions League, Group B
Barcelona v Inter Milan
Camp Nou, Barcelona
Wednesday, 11pm (UAE)
Spain drain
CONVICTED
Lionel Messi Found guilty in 2016 of of using companies in Belize, Britain, Switzerland and Uruguay to avoid paying €4.1m in taxes on income earned from image rights. Sentenced to 21 months in jail and fined more than €2m. But prison sentence has since been replaced by another fine of €252,000.
Javier Mascherano Accepted one-year suspended sentence in January 2016 for tax fraud after found guilty of failing to pay €1.5m in taxes for 2011 and 2012. Unlike Messi he avoided trial by admitting to tax evasion.
Angel di Maria Argentina and Paris Saint-Germain star Angel di Maria was fined and given a 16-month prison sentence for tax fraud during his time at Real Madrid. But he is unlikely to go to prison as is normal in Spain for first offences for non-violent crimes carrying sentence of less than two years.
SUSPECTED
Cristiano Ronaldo Real Madrid's star striker, accused of evading €14.7m in taxes, appears in court on Monday. Portuguese star faces four charges of fraud through offshore companies.
Jose Mourinho Manchester United manager accused of evading €3.3m in tax in 2011 and 2012, during time in charge at Real Madrid. But Gestifute, which represents him, says he has already settled matter with Spanish tax authorities.
Samuel Eto'o In November 2016, Spanish prosecutors sought jail sentence of 10 years and fines totalling €18m for Cameroonian, accused of failing to pay €3.9m in taxes during time at Barcelona from 2004 to 2009.
Radamel Falcao Colombian striker Falcao suspected of failing to correctly declare €7.4m of income earned from image rights between 2012 and 2013 while at Atletico Madrid. He has since paid €8.2m to Spanish tax authorities, a sum that includes interest on the original amount.
Jorge Mendes Portuguese super-agent put under official investigation last month by Spanish court investigating alleged tax evasion by Falcao, a client of his. He defended himself, telling closed-door hearing he "never" advised players in tax matters.
MATCH INFO
Newcastle 2-2 Manchester City
Burnley 0-2 Crystal Palace
Chelsea 0-1 West Ham
Liverpool 2-1 Brighton
Tottenham 3-2 Bournemouth
Southampton v Watford (late)