The latest of the UAE’s high-profile developers to appear vulnerable in the current economic climate seems to have come through its troubles successfully. Aldar’s financial results for 2011 showed net profits of AED 642.5 million, compared with the net loss of AED 12.7 billion the year before.

Clearly the government’s two bailouts during the course of the year have worked; revenues of AED 6.7 billion were nearly four times greater than 2010’s AED 1.8 billion, largely from the sale of land plots and completed residential units and project management fees – and the biggest customer for land sales was the Abu Dhabi government. Income of AED 3.9 billion came from the sale of the Central Market development and Ferrari World.

The developer’s more conventional operations are doing well, however – recurring revenues from investment properties, hotels and schools were up 48 percent to AED 1.3 billion. During 2011 Aldar also completed 1,930 residential units (mostly in Al Raha Beach) and some significant investment developments like Yas Island IKEA, Gardens Plaza and Motorworld Phase 1 (a total of 76,000 sq m of new retail space).

The Company has also written down the value of some of its assets “in line with prevailing market values and upon further business reviews undertaken over the course of the year”. That amounted to impairments, provisions and ‘fair-value’ losses of AED 3bn during the year, so the profits look even better.

Last year, Aldar received AED 36.3bn in cash from two financial transactions with the Government of Abu Dhabi and its investment arm Mubadala, mostly for the sale of assets.

“These transactions were designed to create a solid financial foundation needed to drive returns to shareholders” Aldar said in its financial statement.

Aldar Properties chairman Ali Eid AlMheiri pointed to the delivery of “major milestones” from the group’s development activities. “We also undertook a number of financial initiatives to return Aldar to long term growth and ensure ongoing value creation for all our stakeholders.

“We are entering 2012 in a stronger financial position with lower debt levels and stable cash flows.”