Aldar Properties (ALDAR) announced a cash dividend of 10%, or 10 fils per share, today, according to a statement on the ADX website. Which is 25% higher than the 10% dividend handed out last year according to Aldar (the statement says the "payout" is 25% higher, reflecting the 25% increase in the number of shares issued, not the dividend amount per share).
Aldar dividend yield for 2008 is about 3.8% (based on current share price). Not as good as some, but better than the 1% yield last year (because the share price was higher, not because the dividend was lower).
The 2008 dividend will cost Aldar about AED 260 million (based on 2.578 billion shares outstanding), so they must be reasonably confident about their cash supplies. Or are they misguided in handing out cash when the world's financial plumbing has frozen up?
The market doesn't seem to think much of the dividend proposed - Aldar shares are down 6% to AED 2.19 in the first hour or so of trading, while the Abu Dhabi market (ADX) is down 1.0%. Aldar shares were suspended briefly this morning for disclosing dividend information during trading hours.
Annual General Meeting (AGM) date is proposed as 04 March 2009. No time or location supplied yet. See also ...
Another disclosure from Aldar Properties (ALDAR) has just appeared saying that the dividend is AED 0.125 per share which is a 12.5% increase. In other words, a 25% increase on the 2007 dividend in a way that makes more sense now. New subject line and paragraph from second disclosure below ...
Aldar 03 February 2009:
Aldar 2008 dividend to increase 25 per cent to AED10fils
Dear Sir,
Abu Dhabi 3 February 2009: The board of directors of Aldar Properties PJSC, Abu Dhabi's leading property development, investment and management company, chaired by Ahmed Ali Al Sayegh, met on 2 February 2009.
At this meeting the board decided that, based on the company's financial results, operational performance and outlook, to propose to the Annual General Meeting, to be held on 4 March 2009, a dividend per share for financial year 2008 of AED10fils.
This represents a 25 per cent increase on the previous year's payout and underlines the financial strength of Aldar, its dynamic dividend policy and commitment to create value for all its shareholders.
Yours truly,
Shafqat Ali Malik
Chief Financial Officer
Aldar Properties PJSC
Aldar (updated disclosure) 03 February 2009:
Aldar 2008 dividend to increase 25 per cent to AED 0.125
...
At this meeting the board decided to propose a dividend per share of AED 0.125 for the financial year 2008 to be approved at the Annual General Meeting on 4 March 2009.
can anyone make sense why the share price limited down today?
There was a report out by Morgan Stanley saying that "UAE property prices have fallen off a cliff". Date of report is 30 January 2009, it could be responsible for negative sentiment this week. Or maybe Aldar shareholders think Aldar increasing a cash dividend is an act of bravado in what are difficult financial times. _________________ UAE IPO list | posting guidelines
Abu Dhabi – The AGM of Aldar Properties PJSC (ALDAR), Abu Dhabi’s leading property development, management and investment company was held today at the Emirates Palace Hotel.
At the meeting, all resolutions were passed including an increase in final dividend by 25% to AED 0.125 and the approval of director remuneration for the year.
An EGM was also held to propose amendments to the company's articles of association to further strengthen the company's corporate governance, in line with the requirements of the Emirates Securities and Commodities Authority. The proposed amendments were duly passed.
At today's meeting, Mr Ahmed Ali Al Sayegh, Chairman of Aldar Properties said, “2008 was an important year for Aldar, a year that witnessed completion and delivery of several projects. It was one in which the business continued to grow consistently and profitably following our clear strategy. The improvement in our sales, profitability and net asset value is testament to the fact that our strategy is working and the business is building an ever greater momentum.”
At this meeting, the financial results for the year ended 31st December were presented. The Chairman of Aldar Properties highlighted three additional key performance indicators that are central to understanding the development of Aldar:
Net asset value grew by 108.5 percent from AED 7.7 billion to AED 16.0 billion
Developments under construction increased from AED 8.3 billion to 22.9 billion
Net operating profit for the year increased to AED 2.2 billion from AED 0.1 billion
By the end of the AGM, a number of queries had been addressed, including how Aldar has responded during a period of financial and economic uncertainty in the world. The point was made that Aldar can grow consistently, profitably and competitively in 2009 and beyond. The solid foundations put in place in recent years have made the business more resilient and well placed to prosper in this rapidly changing environment. Other themes to emerge included:
Over the coming years, Aldar will build out an unparalleled footprint in the United Arab Emirates, developing a number of sustainable communities and attracting ever greater numbers to the region.
Our extensive knowledge of local customers is coupled with a range of unmatched developments to meet the real needs of a population growing in size, wealth and aspiration.
The company is focused on delivering its part of the Abu Dhabi government’s Economic Vision 2030, contributing to its realisation and success.
Furthermore the board has confidence in the leadership team’s ability to take important decisions to ensure the Group is able to succeed throughout the prevailing market conditions, ensuring shareholders benefit.
The company has an increasingly robust investment portfolio that will withstand the passage of time and which will deliver high quality results on a consistent basis.
The Chairman stated that Aldar remains cautiously optimistic about the year ahead and confident of making further progress towards its long-term strategic and financial objectives.
The Chairman went on to recognise the hard work that has gone into developing the Aldar business during the past year. He made a point of thanking all Aldar employees for their valuable contribution that has manifested itself in these excellent results.
Finally, the Chairman thanked their Highnesses Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates, Supreme Commander of the UAE Armed Forces and Ruler of Abu Dhabi, and Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their continued support.
Finally, the Chairman thanked their Highnesses Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates, Supreme Commander of the UAE Armed Forces and Ruler of Abu Dhabi, and Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their continued support.
Well, given that the Al-Nahyans are heavy investors in Aldar and basically have said that Aldar (together with the other major developers in AD) will not be allowed to face a shortage of funds...
Things must be so easy when you got hundreds of billions stashed away and sit on 9% of the worlds oil reserves _________________ Nakheel bonds SOLD at a lovely lovely profit...My current holdings right now FGB, Deutsche Bank, Credit Suisse, Barclays and Aldar.
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