(Adds company comment, detail)
CAIRO Nov 14 SODIC, Egypt's
third-biggest listed property developer, has swung to a
quarterly net profit, helped by delivering homes at the upscale
Allegria residential project west of Cairo.
The country's real estate industry was thrown into turmoil
by last year's uprising against President Hosni Mubarak, hitting
demand for high-end property.
SODIC said on Wednesday it made a third-quarter net profit
of 46.8 million Egyptian pounds ($8 million), compared with a
net loss of 38 million in the 2011 period.
In July, it was given an extra two years by authorities to
complete two phases of Allegria, one of several new suburbs
being built on the outskirts of the congested capital, covering
3.6 million square metres of land.
SODIC said it had delivered 70 units during the third
quarter worth 215 million pounds and was "well in line" to
deliver a forecast 350 units in 2012.
"Strong sales, on track unit delivery, timely cash
collection and secured financing are all reflected in its
healthy balance sheet," it said.
Third-quarter revenue was 222 million pounds boosting
nine-month revenue to 862 million. SODIC does not fully
recognise revenue until it delivers units.
It has been spared much of the legal uncertainty over land
bank ownership that damaged investor confidence in the sector
since Mubarak was ousted.
An agreement with authorities in March to develop projects
on its land bank in West Cairo within three years protected its
assets from possible legal challenges.
It launched the fifth phase of its Westown Residences
during the third quarter which contributed to a nine-month
record of gross new contracted sales of 1.47 billion pounds.
SODIC shares were up 0.1 percent at 20.8 pounds by 1215 GMT,
($1 = 6.1013 Egyptian pounds)
(Reporting by Tamim Elyan and Shaimaa Fayed; Writing by Tamim
Elyan; Editing by Dan Lalor)