Sorouh Real Estate’s Net Profit Vaults 42 Per Cent in 2008

Sorouh Real Estate PJSC, one of the leading master-planners and developers in Abu Dhabi, on Thursday announced that it has earned a full year net profit of Dh1,784 million in 2008, registering a 42 per cent increase over the Dh1,257 million recorded in the previous year. Stating this in a Press statement, the company said its revenue rose to Dh3,723 million in 2008 from 
Dh2,321 million in 2007. The increase in net profit was represented in a rise in earnings per share to 74 fils last year compared to 50 fils per share in 2007. The increased net profit was generated from operating activities, with no asset revaluations, the statement said. Sorouh Real Estate officials later clarified that the company made a net profit of Dh46 million in the fourth quarter of 2008 even when most of the sectors of the global economy was reeling under the impact of the financial crisis. They issued this clarification in response to the reports in a section of the media that the company made losses in the last quarter of 2008.

According to the statement, the company reported a growth of 135 per cent in total assets to Dh17 billion towards the end 2008 from Dh7.2 billion in 2007. This led to a jump in the net asset value by 33.5 per cent to Dh5,958 million in 2008 from Dh4,463 million in 2007. Liquid funds increased from Dh1.4 billion in 2007 to Dh6.8 billion 2008 as a result of sales and rental income, and funds raised through the issue of an award-winning asset-backed Sukuk during the third quarter of 2008. The statement conceded that the costs of revenue — which are related to cost of land plots, attributable cost of infrastructure work and lease expenses — increased to Dh1,426 million in 2008 as against Dh1,001 million in 2007. The general and administrative expenses also rose from Dh165 million in 2007 to Dh340 million in 2008 due to expansion programmes, consultancy work and expenses related to subsidiaries, the statement said. Sales and marketing expenses also rose, from Dh100 million in 2007 to Dh311 million in 2008. But the Bank borrowings decreased from Dh 233 million in 2007, to Dh 220 million in 2008, the statement said.