Abu Dhabi: Abu Dhabi-based developer Sorouh Real Estate Company’s consolidated net profits in H1 of 2012 ascended to Dhs259.4 million up from Dh201.6 for the same period of 2011, recording 29 per cent increase, the company said in a statement.
The company said that the consolidated net profits for Q2 of 2012 soared to Dh166.6 million up from Dh125.3 million of Q2 of 2012 by 33 per cent year on year basis.
Sorouh attributed the improvement in its performance to continued strengthening of sutainable recurring income from its investment portfolio as well as revenues from its National Housing projects, subsidiaries and the release of contingencies and provisions.
“Revenues from National Housing projects increased significantly, generating nearly Dh1.2 billion of revenue for H1 of 2012, which represent an increase of 247 per cent year on year basis,” the company added.
“These are strong numbers. The comparison between Q2 of 2011 and Q2 of 2012 showed 21 per cent increase which represent a beat out of consensus without provisions contribution,” Marwan Shurrab, vice-president and chief trader at Gulf Mena Investments, told the Gulf News.
“The company showed robust financial position with cash collections of approximately 1 billion in H1 of 2012, Dh1.1 billion of cash on balance sheet with low gearing of 41 per cent. Net asset value increased from Dhs2.37 per share to Dh2.47 per share.
The statement showed that strong overall leasing demand has led to a rise in revenues from investment properties of 22 per cent quarter on-quarter to almost Dh50 million in Q2 of 2012, and reaching Dh100 million for H1 of 2012, an increase of 18 per cent year on year.
Sorouh said that it aims to achieve of Dh500 million of annualised recurring income by 2014.
Abubaker Seddiq Al Khouri, Sorouh’s Managing Director, said: “We are very pleased to be able to report a continued strengthening of profitability in the second quarter and for the first half of the year, as the business continues on its path to maturity.”
Al Khouri added: “The quality of earnings continues to improve through the diversification and strengthening of revenue streams. National Housing is now an important contributor to the quarterly revenue mix along with the increased amount of leasing income. At the same time, we are continuing to invest across our development portfolio to ensure that we meet the demand for high quality product with a pipeline of some 7,000 units.”
On March 11, 2012, Sorouh and Aldar announced that they were in early discussions to evaluate the possibility of a merger.