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Thu 12 Aug 2010 11:33 AM

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Seef Properties reports 18% decline in H1 profit

Bahraini developer says sharp correction in the Gulf's real estate takes toll on earnings.

Seef Properties reports 18% decline in H1 profit
BUILDING BAHRAIN: The state-owned firm said net profit for the six months to June 2010 was BD3.3m ($8.7m). (Getty Images)

Bahraini developer Seef Properties on Thursday reported an 18 percent decline in net profit for the first half of 2010, as the kingdom’s real estate market continues to struggle.

In an interim statement, the state-owned firm said net profit for the six months to June 2010 was BD3.3m ($8.7m). This compared to BD4m ($10.6m) in the same period a year earlier.

Seef reported a slight 0.16 percent rise in gross income to $16.3m for the first half of 2010. However, the developer saw a 0.29 percent decrease in total assets for the period under review, down to $288m from $288.9m a year earlier.

In a statement, the firm said the sharp correction in the Gulf’s real estate markets continued to take its toll on earnings.

“It is heartening to note the growth in gross income, marginal though it may be, considering the current state of real estate market as a result of the global downturn,” said Sheikh Abdulla bin Khalifa Al Khalifa, chairman, Seef Properties.

“The process of correction is still under way, and it is affecting the company's earnings through the fair-value adjustments on the company's property investments. However, we are confident about the future and look forward to delivering a successful 2010.”

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