Sorouh Real Estate announces first quarter results 2011

Abu Dhabi, May 1, 2011 (WAM) - Sorouh Real Estate PJSC, the Abu Dhabi-based real estate developer, announced its first quarter results for the period ended 31 March 2011. Revenues for the first quarter 2011 were Dh452m (Q1 2010: Dh430.7m). Net profit for the first quarter 2011 was Dh76.3m (Q1 2010 Dh131.6m).
In March, the company commenced the phased handover of Sun and Sky towers. The towers are the first Grade A buildings to be delivered in Abu Dhabi's new investment zone on Shams Abu Dhabi, Al Reem Island. Since handover commenced on 1st March, circa 25% of commercial units have been handed over resulting in Dh100m of cash collection, Dh226m of revenue recognition and Dhs40m of profits this quarter. The handover of residential units will commence on 3rd May 2011. Other profit made during the quarter derived mainly from leasing income from Sorouh's growing investment portfolio, continued construction progress on Watani, a government housing project and profits from subsidiaries.
Earnings per share for the period were 2 fils per share (Q1 2011: 5 fils per share).
The Company maintains a strong balance sheet with net assets as at the end of the first quarter 2011 of Dh6.3bn (FY 2010: Dh6.2bn).
The Company has low gearing, maintains Dh965m (FY 2010: Dhs1.3bn) of cash on its balance sheet and has Dhs1bn of undrawn committed bank lines available. Total bank borrowings are Dh1.7bn, representing a debt-to-equity ratio of 27%. - Emirates News Agency, WAM