UAE. Sorouh Real Estate, the Abu Dhabi-based real estate developer (ADX: SOROUH), today announces its first quarter results for the period ended 31 March 2012.
Q1 2012 Financial Highlights:
Q1 2012 Operating Highlights:
Strong start to 2012 – Q1 revenues more than doubled year-on-year to almost AED 1 billion.
Net Profit up 22% year-on-year, representing a continued strengthening of sustainable recurring income from Sorouh’s investment portfolio and revenues from its National Housing projects.
Revenues from National Housing projects significantly increased, generating AED62 million in gross profit in Q1.
Revenues from investment properties grew 14% year-on-year to almost AED50 million in Q1. The Company is on track to reach its target of AED500 million of recurring income by 2014.
Almost all sold units for Sun Sky Towers have now been handed over. Handed over units generated a gross profit of AED33 million in Q1. The average development margin for the project was 17 %, in line with previous guidance.
Robust financial position, with cash collections of approximately AED450 million in Q1. AED1,503 million of cash on balance sheet with low gearing of 42%.
Abubaker Seddiq Al Khouri, Managing Director, Sorouh, commented: “I am pleased to be able to report a strong start to 2012. These results reflect the strength and maturity of our business. We continue to diversify our revenue streams which will support the quality of our earnings over the medium to long term. The current flight to quality with Abu Dhabi real estate leaves us well positioned to deliver an exciting project pipeline of some 7,000 units between now and the end of 2013.”
Q1 2012 Development Portfolio Update
Shams Abu Dhabi
The hand-over of sold units at Sun Sky Towers is almost complete and leasing of residential and commercial units is progressing well. Over 900 families now live at the development.
Commercial tenants at Sun Sky Towers include the Austrian Embassy, Agthia Group, Al Ramz Financial Services, Advanced Integrated Systems and Arabian Construction Company. Waitrose will be opening from June 2012, and other retail outlets have begun to fit out.
The Gate Towers are advancing rapidly and are now 75% complete. At present, two of the four sections of the penthouse bridge structure have been raised and locked in place (the highest ever construction lift for a real estate development). This will house the unique penthouses at the Gate Towers.
Sorouh has completed the infrastructure on Shams Abu Dhabi, with 12 sub-developer plots under construction. Three sub-developer projects are expected to be completed in 2012.
The development is progressing well, with infrastructure at an advanced stage. The development is on track for phased completion and delivery at the end of 2012 through Q1 2013.
All infrastructure works at the Saraya master-planned development, near the Abu Dhabi Corniche, are complete and four plots are currently under construction by sub-developers. This is a positive development for the location and is a catalyst for other sub-developers. It has also created an interest in the secondary market for the sale of land plots.
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