Sorouh announces Dhs1.26bn net profit for 2007

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Sorouh Real Estate announced a net profit of Dhs1.26bn, which represents an increase of 29% from the net profit of Dhs975m in 2006. As a result, a return on equity of 28% was reported. Earnings per share increased by 28% to Dhs0.50, from Dhs0.39 in 2006 while net Asset Value per share increased by 29% from Dhs1.39 to Dhs1.79. This indicates Sorouh's strong performance and reinforces its distinguished position in the real estate industry. Sales of land, villas and apartments during the course of 2007 reached Dhs6bn. Plot sales and unit sales went up by 30% and 22% respectively, which shows a 28% increase compared with last year's Dhs4.7bn. Sorouh reported total assets as at 31 December 2007 were Dhs7.2bn, up 66% from Dhs4.3bn as 31 December 2006. Market capitalization totaled Dhs21bn as at 31st December 2007 compared to Dhs6bn as at 31 December 2006. Investment Properties increased by 23% from Dhs1.02bn to Dhs1.26bn. Properties under development increased by 161% from Dhs414m to Dhs1.08bn. Bank borrowings grew to Dhs234m from Dhs12m in 2006. Going forward, Sorouh intends take advantage of its strong balance sheet to take on additional borrowings with the intention of improving further its return on equity and ensuring the availability of sufficient funding for the delivery of its existing and future projects. His Excellency Saeed Eid Al Ghafli, Sorouh's Chairman, expressed his pleasure with the results which exceeded expectations. He said: 'These financial results reflect the significant investments we have made throughout the first tow years since the company's inception, which highlights Sorouh's outstanding position on both local and international levels.' His Excellency also mentioned that assets grew significantly during the year on the back of development work achieved across all projects and higher sales levels, demonstrating Sorouh's strong cash generation ability. This emphasises Sorouh's policy that aims to add more value to its stakeholders. 'During 2007, Sorouh has started to build up a diversified stream of revenue. 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. Abubakr Siddiq Al Khouri, Managing Director, Sorouh Real Estate, commented: 'This outcome is yet another proof to be added to Sorouh's achievements for this year and proves that the company is meeting its strategic objectives of achieving the best value for its stakeholders and to the UAE national economy.' Al Khouri added: 'The primary driver of revenue and profit growth is the strong performance from land sales on Shams Abu Dhabi and Saraya projects. The increase in profits from Shams Abu Dhabi is attributable to Sorouh's purchase of the freehold title to Shams Abu Dhabi, previously held under a lease arrangement.' 'The rental income from Sorouh's three residential villages of Sas Al Nakhl, Khalidiya Village and Al Oyoun Village (Al Ain) has boosted 2007 income and net profits. Occupancy for all three villages was reported at 100%. A further 484 villas are expected to become available at Sas Al Nakhl during the course of 2008 and will provide a further boost to rental income', Al Khouri added. Mounir Haidar, Chief Executive Officer, Sorouh Real Estate, expressed happiness with these results commenting: 'Sorouh is building a financially sound and balanced organisation which contributes to its stakeholders. Development planning continues for the Al Mashtal mixed use development on Abu Dhabi Island, the Gate development on Shams Abu Dhabi, a Mall, and Hotel in Al Ain City (Mövenpick Hotels & Resorts).' 'Design work is progressing for many of the amenities to be built within Shams Abu Dhabi, as well as infrastructure at Saraya, Al Mashtal, a new project to be launched in the near future in Abu Dhabi, and Sorouh's Head Office.', Haidar added. Sorouh has recently announced the launch of Al Ghadeer. This development, on the Abu Dhabi / Dubai border is a modern and affordable community offering a range of quality homes including villas, townhouses and apartments that are well priced with no compromise on quality. The sale launch will take place soon. On the international front, Sorouh has launched two major projects in Egypt and Morocco. In a joint venture with an international property company, Sorouh plans to build business parks in the UAE and other GCC countries. It is worthwhile mentioning that Sorouh was awarded three prestigious accolades during 2007. It won the 'Best New Business Category' at the Middle East Business Achievements Awards, the 'Cityscape Best Commercial Project' for the Gate District and also won the 'CNBC Arabian Property Award' for Best development for Central Park at Shams Abu Dhabi. These awards are indications of the positive direction Sorouh has taken, and will continue to take forward.

 

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