Aldar Properties plans to spend up to Dh4 billion ($1.08 billion) in the shortterm, its chief financial officer said on Thursday, after Abu Dhabi's largest property developer reported a 41 per cent jump in third-quarter profit.

Aldar is working on 23 development projects in Abu Dhabi and is focused on completing existing projects, Greg Fewer said in a conference call with journalists.

"Our overall capital expenditure guidance is around Dh4 billion ($1.08 billion) still required to finish existing projects... to spend over the next 15 to 18 months," he said.

The builder of Abu Dhabi's Formula One race circuit made a profit of Dh584 million ($159 million) in the three months ending September 30, up from Dh413 million ($112.4 million), it said in a statement on the bourse.

The profit was ahead of analysts forecasts. Sico Bahrain had expected Aldar to make a quarterly profit of Dh382.6 million ($104 million), while HSBC was looking at a profit of Dh442 million ($120 million).

Recurring revenues of Dh526 million ($143 million) were up 12 per cent while revenues rose 17 per cent to Dh1.37 billion ($372 million).

Revenue was also buoyed by the handover of units and Yas Mall which is 98 per cent leased and due for opening next week.

Fewer said the company expects to lower its gross debt to Dh6 billion ($1.63 billion) from Dh9.6 billion ($2.6 billion) currently in 12-18 months.

Commenting on the performance, CEO Mohammed Khalifa Al Mubarak, said: “This has been a strong quarter that clearly demonstrates the effectiveness of our strategy. Our recurring revenue assets continue to grow, especially with Yas Mall coming on stream and we are well on our way to achieving our recurring income target.”

“This will help smooth out bottom line earnings and underpin our business as we commence a new wave of development projects, which include those announced earlier in the year and a number to be launched over the coming quarters,” he added.

Aldar, majority-owned by the emirate's government, was rescued by a $10-billion state bailout in 2010 following a market crash, but is rebounding following a merger with rival Sorouh Real Estate and a recovery in the UAE's property market.-Reuters and TradeArabia News Service