ABU DHABI, Aug 7 (Reuters) - Aldar Properties, Abu Dhabi’s largest property developer, on Tuesday missed estimates with a 28 percent fall in second-quarter profit which it blamed on a revaluation of properties related to its retail portfolio.
“We are seeing some headwinds; in the retail portfolio, we renewed leases and updated book values,” Chief Financial Officer Greg Fewer said on a media call.
The builder of Abu Dhabi’s Formula One circuit reported a net profit attributable to owners of 446.5 million dirhams ($121.6 million) in the three months to June 30.
That was down from 620.2 million dirhams a year earlier and short of the 561.9 million and 642.0 million dirhams forecast by analysts at SICO Bahrain and EFG Hermes, respectively.
Aldar booked a 189.9 million dirham loss on revaluation of its investment properties.
Revenue rose to 1.51 billion from 1.35 billion dirhams.
A sluggish economy and property market in the oil-rich capital of the United Arab Emirates has depressed values and rentals in the last two years.
Still, Aldar is optimistic, following a 50 billion dirham stimulus plan announced by Abu Dhabi in June.
“We are excited about the stimulus from the government, there are programmes coming in the third quarter.... so a very solid market backdrop to drive sentiment,” said Fewer.
Aldar has also raised its capital expenditure plan for the next two years by 1.3 billion dirhams to 6.7 billion, he said.
In May, Aldar announced it had acquired 3.7 billion dirhams of real estate assets from Abu Dhabi’s Tourism Development & Investment Company (TDIC).
The cash transaction was closed and accounted for in the second quarter, Fewer said.
$1 =3.6730 UAE dirham Reporting by Stanley Carvalho; editing by Jason Neely