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Abu-Dhabi based developer announces H1 revenue down

27 Jul 2010

Abu-Dhabi based developer announces H1 revenue down

Real estate developer Sorouh reveals its revenue generated for H1 2010 dropped by almost half, compared to the same period last year.

Figures released revealed that for the first half of 2010, revenues were down to AED 621m, compared to AED 1,314 m in H1 2009.

Surouh’s net profit for the half year 2010 was AED 152m compared to H1 2009: AED 281m. The developer said this reflected the sale of one plot on Shams Abu Dhabi, recognition of income from 41 units at Golf Gardens and rental income from its property investment portfolio.

Revenues for the second quarter 2010 were AED 190m (Q2 2009: AED 978m) while net profit for the second quarter 2010 was AED 20m (Q2 2009: AED 151m) and was mainly attributable to rental income from the investment portfolio.

A statement posted on Surouh’s website, said: “We continue to prudently build our provisions, adding a further AED 50m in H1 2010 (H1 2009: AED 24m).”

During the period, Sorouh continued to focus on the delivery of core future income-generating projects. The Company invested more than AED 1bn in its infrastructure, development and investment properties, principally Gate Towers, Sun and Sky Towers, alrayyana, Watani, Sorouh’s mall in Al Ain and Sorouh’s tower at Danat Abu Dhabi.

 Net assets as at the end of the first half 2010 were AED 6.3bn (YE 2009: AED 6.1bn).

 The recent signing of a AED 2.35bn four-year finance facility has resulted in almost AED2bn of free incremental cash and facilities being available to Sorouh. These funds will be used to finance the construction of Shams Gate and other developments in Abu Dhabi. Fully drawn, gearing will be 37%. By extending the debt maturity profile, Sorouh has significantly strengthened its liquidity position and avoids having to refinance in 2011-2012 when a significant amount of company debt maturities are expected.

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