Sorouh Real Estate PJSC Posts Aed130 Million Q1 ProfitWednesday, April 29, 2009
Abu Dhabi-based real estate developer, Sorouh Real Estate PJSC, today announced its 1st quarter results for the period ended 31 March 2009. Net profit for the 1st quarter 2009 was AED 130.4 million representing an increase on 4th quarter 2008 (AED 45.9M) but a decrease against 1st quarter 2008 (AED 361.5M). Earnings per share for the period were 5 fils per share (Q1 200814 Fils). Revenues for the 1st quarter 2009 were AED 335.6M (Q4 2008aed 532.6 mq1 2008AED 623.7M). The results reflect the company s strategy to develop its earnings profile by increasing recurring income for long term profitability. This will be achieved by retaining more property for development and subsequent sale and lease, despite the short term impact on the income statement. The results also reflect the decision to sell less land which is currently not reflective of its intrinsic value. The company maintains a strong balance sheet with net assets as at the end of the 1st quarter 2009 of AED 5.7 billion (FY 2008 AED 5.9 billion). Notably the business has seen strong growth of 63in its investment properties to AED 1.4 billion. The company has low gearing and retains AED 5.9bn of cash on its balance sheet. Cash collection continued to be strong in the period at AED 732 million (1Q 2008 AED 893 million). Total bank borrowings are AED160.5 million, representing a debt to equity ratio of 2.79, this excludes the outstanding amounts of the asset-backed Sukuk certificates issued in the 3rd quarter 2008 which is a non-recourse facility.
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