January 31, 2013 / 5:11 AM / 5 years ago

UPDATE 1-Abu Dhabi's Sorouh Q4 net profit rises 21 pct

* Sorouh Q4 net consolidated net profit 118.9 mln dirhams

* 2012 revenue 3 bln dirhams, down 20 pct

* Over 7,000 units coming to market in 2013 - MD (Adds details)

DUBAI, Jan 31 (Reuters) - Abu Dhabi’s Sorouh Real Estate , which has agreed to merge with Aldar Properties , reported an 21.2-percent rise in fourth-quarter net profit, driven by income from government projects and higher leasing revenue.

Abu Dhabi’s second largest property developer by market value, posted a quarterly consolidated net profit of 118.9 million dirhams ($32.37 million), compared with 98.1 million dirhams in the prior-year period, it said in a bourse statement on Thursday.

The earnings missed forecasts of brokerages SICO Bahrain and Arqaam Capital that had estimated net profits of 119.6 million dirhams and 168 million dirhams respectively.

Revenue from Abu Dhabi’s national housing projects totalled 443 million dirhams in the fourth quarter, up 41 percent year-on-year, said the firm. The leasing portfolio generated 67 million dirhams of revenue in quarter, up 43 percent compared to the same period in 2011.

Profit for 2012 was 442.6 million dirhams compared with 334.7 million dirhams for 2011.

Revenue for the year was 3 billion dirhams, down 20 percent. The company booked fair value loss on investment of 108.9 million dirhams and impairment of goodwill of 35.8 million dirhams.

Shareholders of Sorouh and Aldar will vote on the proposed merger on Feb 21.

Under the merger proposal, Sorouh shareholders will get 1.288 Aldar shares for every share they own. Sorouh will be dissolved and delisted from the local bourse after the merger.

Sorouh’s managing director Abubaker Seddiq Al Khouri, who is proposed to be the chairman of the merged entity, said the company would deliver over 7,000 units this year.

“These deliveries will strengthen cash flow and improve profitability,” said al-Khouri.

Another 15,000 units are expected to enter Abu Dhabi’s already oversupplied real estate market this year, property consultancy CBRE has said. The merger was a step by the government to revive the emirate’s battered property sector. ($1 = 3.6730 UAE dirhams) (Reporting by Praveen Menon; Editing by Dinesh Nair)

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