Sorouh Real Estate PJSC today announced its third quarter results for the period ended 30 September 2011.
Revenue for the third quarter 2011 was AED890m (Q3 2010: AED388m), principally driven by the continued handover of Sun and Sky Towers, construction revenue from the Watani project and rental income from Sorouh’s property investment portfolio. The rental portfolio continues to be a meaningful contributor to revenues and provides cover for the Company’s corporate expenses. Revenue for the first nine months was AED2,561m (9M 2010: AED1,008m).
Net profit for the third quarter 2011 was AED 83.6m (Q3 2010: AED62.9m) after provisions of AED 50.7m. These provisions were prudently charged primarily against investment property valuations despite relative firmness of our rent rolls versus the market average.
Net profit for the nine month period was AED 285m (9M 2010: AED215m).
Earnings per share (EPS) for the three month period were 3 fils (3M Q3 2010: 2 fils). EPS for the nine months were 9 fils (9M 2010: 8 fils).
The Company maintains a strong balance sheet with net assets as at the end of the third quarter 2011 of AED6.5bn (FY 2010: AED6.2bn).
The Company has low gearing, maintains AED1.2bn of cash on its balance sheet and has AED500m of undrawn committed bank lines available. Total bank borrowings are AED2.1bn, representing a debt-to-equity ratio of 34%.
Abubaker Seddiq Al Khouri, Managing Director, Sorouh, commented “It has been another period of solid performance despite the challenging market backdrop. The highlight has been the continued and successful handover of another 340 or so units to customers during the period. Sun and Sky Towers, the first new and thriving community on Al Reem Island, is really taking shape.
“We continue to see lift in sales and leasing demand during the period, partly driven by our innovative lease to own and rent to own products. We have continued to deliver quality product into the market this quarter by handing over the latest addition to our investment property portfolio, Al Murjan. Al Murjan is already starting to see strong demand with 40% of the building already leased out. Last week, we were very pleased to announce a large long-term leasing deal with DCI, a French government-related company, for al rayyana. Both Al Murjan and al rayyana will significantly strengthen our growing recurring income portfolio”, he added. [mpoverlay][/mpoverlay].