Sorouh reports net profit of AED 976 million
Sorouh Real Estate, the leading real estate developer based in Abu Dhabi, today announced that it had earned a cumulative net profit of AED 976 million for the period beginning July 2005 and ending December 31, 2006. The board recommended to the General Assembly a distribution of 10% of the nominal share value as cash dividends which is equivalent to AED 250 million.
This is the first full financial year for Sorouh, which was established in July 2005. The profit since inception represents an earning per share of AED 0.39. Over the same period the net asset value (NAV) per share grew by 39% to AED1.39 per share.
Sorouh ‘s results were bolstered by strong gains in the fourth quarter of 2006, with net profit of AED 496 million.
Sorouh also reported an excellent marketing and sales performance. Sales of apartments, villas and land plots at SHAMS Abu Dhabi, Sky Tower, Tala Tower, Golf Gardens and Saraya totaled AED 4.7 billion during 2006 contributing strongly to overall results and positioning the company for strong future profit growth.
The gain in the value of investment property was the largest contributor to Sorouh's financial performance in the fourth quarter. The acceleration in value indicates the impressive progress in implementing the Company’s development projects and land acquisition.
This is also reflected in an increase in the company's assets which were valued at AED 4.3 billion on December 31 2006, up 19 percent from AED 3.6 billion at the end of the third quarter.
Saeed Al-Ghafli, Sorouh's Chairman, expressed the Board of Directors’ pleasure with the results noting that achieving profits of close to AED 1 billion for the first full reporting period was an outstanding performance in a competitive market.
"At the end of the third quarter, I predicted that the financial results at year end would reflect the significant investments we have made in our projects The strong growth in the company's assets and the increase in value of investment property shown on our balance sheet are direct results of the achievements on the ground," Al-Ghafli said.
"The success achieved in marketing and sales is expected to continue into 2007 and beyond, strengthening Sorouh's profitability. The sales figures show that our emphasis on quality and master planning to deliver 'life in perfect balance' is being appreciated in the marketplace," Al-Ghafli added.
Al-Ghafli emphasized that Sorouh's current portfolio of diverse projects were in line with the company’s strategic objectives and will continue to deliver increased earnings and shareholder value.
Mounir Haidar, Sorouh's CEO, said that the company is now sharply focused on its mission of completing the construction of its projects led by SHAMS Abu Dhabi, while continuing to take other initiatives to achieve growth.
Listed on the Abu Dhabi Securities Market, Sorouh was established on June 26, 2005 with a capital of AED 2.5 billion. Sorouh has since launched several more projects, including the Gate District and Sky Tower on Shams Abu Dhabi, the Golf Gardens, the Abu Dhabi Aviation Authority residential project, Al-Shamkha national housing project, the Tala Tower and Saraya Abu Dhabi. Sorouh will also be involved in developing the Bab Al-Bahr project in Morocco.
© 2007 Al Bawaba (www.albawaba.com)
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