The Ansam development on Yas Island. All Abu Dhabi tenants are subject to the municipal fees. Courtesy Aldar
The Ansam development on Yas Island. All Abu Dhabi tenants are subject to the municipal fees. Courtesy Aldar

Aldar fourth quarter profits fall 80 per cent on asset management charge



Aldar Properties, Abu Dhabi’s largest real estate developer, reported an 80 per cent plunge in fourth quarter profits on a one-time charge related to its asset management business, against a backdrop of falling property prices in the capital.

The developer’s profit attributable to shareholders fell to Dh144 million for the three months to the end of December, compared with Dh744m for the fourth quarter of 2016. NBAD Securities had forecast a net income of Dh630m for the period, with EFG-Hermes predicting Dh605m.

Aldar said the drop in profits was due to a Dh495m charge, representing 3 per cent of its asset management portfolio. The company didn't provide further details on the charge.

Revenues for the quarter meanwhile rose 32 per cent to Dh1.9bn, coming in ahead of NBAD Securites and EFG-Hermes estimates.

The company's plunge in profits was exacerbated by average apartment and villa sales prices in Abu Dhabi falling 10 per cent and 4 per cent year-on-year in 2017, according to real estate consultancy Asteco, in line with economic trends, job cuts and reductions in staff housing allowances.

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Annual profits for the developer fell 28 per cent to Dh2 billion from Dh2.8bn in 2016, well below an average estimate of Dh2.4bn from analyst forecasts compiled by Bloomberg.

Revenues for the year slipped 1 per cent to Dh6.2bn. The developer said that development sales hit Dh3.5bn for the year across 1,900 units, ahead of guidance for the year. This included Dh1.2bn of sales in the fourth quarter, driven by Aldar's Water’s Edge and West Yas projects on Yas Island.

The company proposed a 12 fils per share dividend for the year, compared with 11 fils for 2016.

“We have bold plans for 2018 - exciting development launches and seeking opportunities to grow our portfolio in existing and new markets,” said Aldar CEO Talal Al Dhiyebi.

“With solid foundations, an extensive land bank, deep industry experience and an enviable portfolio of assets, Aldar is well positioned to achieve its strategy to deliver desirable destinations in Abu Dhabi in 2018 and beyond.”

The developer’s chief financial officer Greg Fewer said that the company’s board will recommend raising the foreign ownership limit to 49 per cent from the current level of 40 per cent.

Aldar has a capex outlay of $1.54bn (AED5.4bn) for the next two years, following a capex outlay of around Dh1.6bn last year, said Mr Fowler, speaking to journalists on a conference call on Thursday.

The company is also considering the refinancing of a $750 million sukuk due this year, he added.

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Mia Man’s tips for fermentation

- Start with a simple recipe such as yogurt or sauerkraut

- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.

- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.

- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.

 

Company%20profile
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How much sugar is in chocolate Easter eggs?
  • The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
  • The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
  • The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
  • The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
  • The Cadbury Creme Egg contains 26g of sugar per 40g egg
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Types of policy

Term life insurance: this is the cheapest and most-popular form of life cover. You pay a regular monthly premium for a pre-agreed period, typically anything between five and 25 years, or possibly longer. If you die within that time, the policy will pay a cash lump sum, which is typically tax-free even outside the UAE. If you die after the policy ends, you do not get anything in return. There is no cash-in value at any time. Once you stop paying premiums, cover stops.

Whole-of-life insurance: as its name suggests, this type of life cover is designed to run for the rest of your life. You pay regular monthly premiums and in return, get a guaranteed cash lump sum whenever you die. As a result, premiums are typically much higher than one term life insurance, although they do not usually increase with age. In some cases, you have to keep up premiums for as long as you live, although there may be a cut-off period, say, at age 80 but it can go as high as 95. There are penalties if you don’t last the course and you may get a lot less than you paid in.

Critical illness cover: this pays a cash lump sum if you suffer from a serious illness such as cancer, heart disease or stroke. Some policies cover as many as 50 different illnesses, although cancer triggers by far the most claims. The payout is designed to cover major financial responsibilities such as a mortgage or children’s education fees if you fall ill and are unable to work. It is cost effective to combine it with life insurance, with the policy paying out once if you either die or suffer a serious illness.

Income protection: this pays a replacement income if you fall ill and are unable to continue working. On the best policies, this will continue either until you recover, or reach retirement age. Unlike critical illness cover, policies will typically pay out for stress and musculoskeletal problems such as back trouble.

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

T20 World Cup Qualifier, Muscat

UAE FIXTURES

Friday February 18: v Ireland

Saturday February 19: v Germany

Monday February 21: v Philippines

Tuesday February 22: semi-finals

Thursday February 24: final 

Blackpink World Tour [Born Pink] In Cinemas

Starring: Rose, Jisoo, Jennie, Lisa

Directors: Min Geun, Oh Yoon-Dong

Rating: 3/5

Five famous companies founded by teens

There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

  1. Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate. 
  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5