The growth of Aldar’s assets producing recurring revenues has prompted some analysts to speculate that the Abu Dhabi developer could spin off this high yielding portfolio just as Emaar Properties did when it listed its malls unit on the DFM last year.
On Tuesday, the ADX-listed company said profits attributable to the owners for the three months to the end of September 2015 rose 9.4 per cent to Dh634.3 million, up from Dh579.6m in the same period a year earlier and beating analysts’ predictions.
Much of this came from its “recurring revenues” portfolio including the 235,000 square metre Yas Mall, 4,800 rented apartments, thousands of square metres of posh offices, scores of hotel rooms and its schools business.
Analysts said that the success of its retail and leasing operations could create the opportunity for spinning off one or more units, a potential share buy back or an extra dividend pay out.
Aldar’s CFO said the company was open to any course that maximised value for shareholders.
“Basically everything is on the table right now. These are potential options,” Greg Fewer told The National. “Our sole objective is to maximise the value of all our assets for the shareholders and there are many many alternatives available to us as we grow and manage these assets.”
Aldar, which merged with Abu Dhabi rival Sorouh back in 2013, also reported that finance costs for the third quarter fell to Dh181.8 million, down from Dh312.9m a year earlier.
“We feel that after paying down debt for so many quarters, Aldar’s debt level is currently too low for the balance sheet to be efficient,” said Sanyalak Manibhandu, a research manager at NBAD Securities. “The company can change that by borrowing more from banks to finance more new projects, they could pay higher dividends, they could buy back shares or they could split the company like Emaar did.”
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