Aldar swings to Q2 profit on sales, rental income

Aldar Properties, the indebted developer rescued by a $5.2bn bailout by Abu Dhabi, swung to a second quarter net profit, helped by sales and rental income, and raised an additional AED1.4bn ($381.2m) loan from banks. The builder of the Yas Marina Formula One circuit made a second-quarter net profit of AED127.3m ($34.6m) compared with a loss of AED475.3m in the same period last year, it said in a statement on Abu Dhabi's bourse on Thursday. Aldar raised an additional financing of AED4.28bn in the first half of year, which included a new loan worth AED1.4bn from local banks in the second quarter, a company spokesman confirmed after the announcement of the results. The remaining financing was raised through an AED2.8bn mandatory convertible bonds issued to Mubadala, Abu Dhabi's investment vehicle. Revenues for first half were AED1.56bn compared to AED427m 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 AED832.1m from the sale of completed homes and land and AED189.6m 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. From / Arabian Business News