ABU DHABI / EMIRATES BUSINESS
Aldar Properties, Abu Dhabi’s leading listed property development, investment and management company, on Monday announced net profit of AED 2.6 billion for the financial year ended 31 December 2015, up 13% from AED 2.3 billion in 2014. Net profit for the fourth quarter rose 4% to AED 750 million, from AED 718 million in Q4 2014.
The Company proposed a 10 fils per share dividend for 2015, up from 9 fils per share in 2014. The Board has also formalised a progressive policy for dividend recommendations from 2016 onwards, underlining the company’s commitment to returning capital to shareholders.
The Board of Directors recommends a cash dividend of 10 fils per share for 2015, up 11% from 9 fils in 2014. With a stabilised asset base and higher quality of earnings, the Board has concluded that now is the right time to formalise a progressive policy for dividend recommendations, linked to the underlying cash flow performance of the business.
With effect from financial year 2016, the Company’s dividend policy will be to recommend returns to shareholders, in the form of annual dividends, of between 65% to 80% of distributable free cash flow from the investment properties and 100% owned operating companies.
In Q4, gross profit from recurring revenues increased by 35% to AED 447 mn versus AED 332 mn in the same period of 2014. Full-year gross profit from recurring revenues rose 49% to AED 1.5 bn in 2015, underpinned by the stabilisation of key assets including Yas Mall, as well as an overall improvement in the operational performance across all asset classes.
In addition to underpinning a progressive dividend policy, Aldar’s stabilised asset base gives the Company confidence in targeting net operating income from recurring revenue assets of AED 2.2 billion by 2020, representing growth of 40%. As previously announced, this will be supported by an investment programme of AED 3 billion, of which 30% has already been committed to date.