Sorouh Real Estate Beats reports 125 per cent growth in net profits over first nine months
Sorouh Real Estate PJSC, one of Abu Dhabi’s leading real estate companies, today announced a 125 per cent rise in net profit for the nine months ended 30 September 2008 to AED 1,738 million (nine months to 30 September 2007: 773 million). Revenue is up from AED 1,486 million to AED 3,191 million. The net profit represents earnings per share of 73 files (31 files per share in September 2007) and was generated from operating activities, with no asset revaluations.
Despite the current global economic situation, the strong fundamentals of the Abu Dhabi market and the company’s strong balance sheet and liquidity meant confidence of the future outlook.
Abubaker Seddiq Al Khouri, Managing Director of Sorouh, said: “We continue to move forward strongly as a business and all our indicators continue to look positive for the remainder of 2008. We remain on course to meet investors’ expectations and we are confident that we are well positioned positively for 2009.
“The global situation introduced a note of caution into the market but thanks to the action of the UAE Government and the coordinated efforts of major governments around the world, we expect the situation on the ground to improve early next year.
The company reported a growth in total assets of 132 per cent, from AED 7.2 billion at 31 December 2007, to AED 16.7 billion at 30 September 2008. Net assets of the company increased from AED 4,463 million as at 31 December 2007 to AED 5,832 million as at 30 September 2008. Liquid funds increased from AED 1.4 billion as at 31 December 2007 to AED 7.7 billion as at 30 September 2008, as a result of cash collected on receivables from the sale of land plots, unit sales and rental income.
Mounir Haidar, Sorouh’s Chief Executive Officer, said: “The strong demand in the Abu Dhabi real estate market means that it is comparatively well-cushioned against the global economic situation. This, coupled with the company’s strong balance sheet and cash resources, means Sorouh can take a positive view of the coming period.”
“We are clearly focused on delivery of our major projects and I am pleased to report satisfactory progress against our targets on all our current developments. Construction is progressing well at SHAMS Abu Dhabi on Reem Island, with the first phase on track for completion in Q1 2010, and we have just broken ground at AlGhadeer. We expect to move forward as planned on all our developments.”
During the last quarter, Sorouh announced significant progress on construction at its major projects, as well as showcasing future projects at Cityscape Dubai, including Lulu Island.
The company also continued to add to its staff and its leadership team, and now has close to 300 staff.