Sorouh sees Q1 net profit rise, boosted by land sale

Abu Dhabi developer chief says 'well positioned' to deliver shareholder value.
Sorouh sees Q1 net profit rise, boosted by land sale
By Andy Sambidge
Thu 29 Apr 2010 08:41 AM

Abu Dhabi developer Sorouh Real Estate on Thursday announced that net profit for the first quarter of 2010 was AED131.6m ($35.83), up 78 percent on the previous quarter and one percent up on the previous year.

The profit increase was driven by the sale of its Shams Abu Dhabi plot and a rise in lease income, the builder said in a statement.

Revenues for the first quarter were AED 430.7m, compared to AED438.1m in the previous quarter, it added.

Abubaker Al Khouri, managing director, Sorouh, said: “We expect significant revenues to come through as we recognise income from the handover of units in Sun, Sky and Tala Towers during this year.

“In addition, we continue to improve the quality of our earnings through increased rental income, which will be further enhanced in the next two years.

“The economic fundamentals for Abu Dhabi remain extremely strong and Sorouh remains well-positioned to support the development of the emirate and deliver long-term shareholder value.”

He added that the company's earnings in the year will also benefit from a new contract with the Abu Dhabi Urban Planning Council as well as increased rental income over the next two years.

Sorouh recently signed an agreement with the UPC to develop Watani, a community for Emirati families.

Work on the project has already started and the project will comprise 1,370 four and five bedroom villas. Watani is due for completion by the end of 2012.

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