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Dubai: Sorouh Real Estate yesterday reported a 218 per cent growth in net profits to Dh361 million during the first quarter of 2008, up from Dh114 million recorded in the first quarter of 2007.
The improved profits performance, representing 14 fils per share (4 fils in 2007 first quarter), came on the back of income from land sales at Shams Abu Dhabi, which was converted during 2007 from leasehold to freehold sales, as well as the good performance of the company's asset portfolio.
The profit generated in the first quarter was derived from operating activities with no asset revaluations. The changes at Shams Abu Dhabi also meant revenue grew strongly, from Dh280 million in 2007 first quarter to Dh624 million.
Abu Bakr Siddiq Al Khoury, Managing Director for Sorouh, said, "We are pleased to report another good financial performance of the company for the first quarter. This was mainly due to the Shams Abu Dhabi freehold sales and the other income producing assets which all performed well."
Market capitalisation was estimated at Dh20.7 billion as of March 31, and total assets grew 12 per cent to Dh8.1 billion, compared to Dh7.2 billion on December 31, 2007. In addition, the company retained strong cash reserves, with liquid funds increasing from Dh1.4 billion to Dh1.7 billion.
During the first quarter of 2008, Sorouh signed an agreement with Metro-Goldwyn-Mayer Studios (MGM) and Rubicon (Rubicon) to explore the development of entertainment opportunities with-in Sorouh's real estate portfolio.
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