Abu Dhabi developer says performance boosted by housing projects revenue in first quarter
Abu Dhabi's Sorouh Real Estate , set to delist and merge with larger rival Aldar Properties in June, posted a 21.6 percent rise in first-quarter net profit boosted by housing projects revenue and income from its investment portfolio.
Sorouh reported a profit of AED101.6m ($27.7m) in the first quarter ending March 31, compared with AED83.6m during the same period in 2012, it said in a bourse statement on Tuesday.
The profit figure missed average forecasts of analysts polled by Reuters who expected quarterly profit of AED151m.
Revenue for the quarter dropped 35 percent to AED632.2m from AED967.2m in the prior-year period.
Abubaker Seddiq al-Khouri, Sorouh's Managing Director, said the company would deliver 7,000 units between now and end of 2014. The developer reported cash collections of about AED1.4bn in the quarter.
Shareholders of Sorouh and Aldar in March approved the state-backed plan to merge both firms and create a real estate entity with assets of about $13bn. The new company, Aldar-Sorouh, is expected to be launched in June.