Sorouh Real Estate announces third quarter results

Sorouh Real Estate PJSC, the Abu Dhabi-based real estate developer, announced its third quarter results for the period ended 30 September 2012.

Sorouh continued its strong performance in Q3. Net profit was up 55 % year-on-year, reflecting continued strengthening of sustainable recurring income streams from Sorouh's National Housing projects, investment portfolio and the release of contingencies and provisions.

Revenues from National Housing projects increased significantly quarter on quarter to Dhs607m from Dhs68m in 2011, a nine fold increase.

A further 10 units at Sun and Sky (including 4 commercial units) and 2 villas at Golf Gardens were handed over, resulting in Dhs94m of revenues.

The leasing portfolio generated Dhs51m of revenue, 19% up on last year. Sun and Sky is now at 95% occupancy, and Al Murjan at 90%. Interest continues for bulk leases from corporate clients, and we are confident of reaching our goal of half a billion Dirhams of recurring revenues by the end of 2014.

Other income increased mainly through the release of Dhs40m of contingency provisions for Sun and Sky, which are no longer required now that the towers are complete and have been operational for over 12 months.

Our financial position is robust, with cash collections of approximately Dhs1.6bn up until the end of the third quarter, Dhs774m of cash on the balance sheet and low gearing of 38%.

Net asset value per share is Dhs2.51 (Q3 2011: Dhs2.43).

Abubaker Seddiq Al Khouri, Managing Director, Sorouh, commented: "Profit growth has continued during this quarter driven primarily by our by National Housing developments. The quality of the business's overall earnings continues to mature as we build more sustainable revenues and a stronger investment portfolio.

"During the next quarter, we expect to make further progress on National Housing developments and move closer to the completion of the Gate Towers, which we will begin to handover early in 2013.

Sorouh has a strong balance sheet and remains well positioned to deliver its development portfolio in the coming years."

Source: http://www.ameinfo.com/sorouh-real-estate-announces-third-quarter-317955