The Abu Dhabi based real estate development company said in a statement today that 2012 revenue of AED3bn was mainly driven by National Housing projects, compared to the handover of Sun and Sky units in 2011. Leasing income increased by 25% year on year to AED217m reflecting successful lease-up of units in new developments such as Sun and Sky Towers, Al Murjan and the BOUTIK retail outlets, as well as continued high occupancy in established properties.
Occupancy across leasable properties remains high and Sorouh continues to see good leasing interest from residential, corporate and retail clients. The Company is confident of reaching its stated goal of AED600m of annualised recurring revenues by the end of 2015. The value of the investment properties portfolio increased by nearly AED800m to AED4.1bn, mainly as a result of the addition of Boutik Al Ain and leased units in Sun and Sky into the portfolio.
2012 continued to see strong investment in properties under development, which bodes well for delivery in 2013. These deliveries will drive cash flow and profit from handovers as well as continue to boost recurring revenues.
Sorouh’s financial position remains robust and the balance sheet is strong. Cash collections in 2012 amounted to AED3.2bn and the company had AED1.3bn of cash on its balance sheet as of 31 December 2012. The company has started to amortise its club loan making repayments of almost AED400m to date. The loan will be fully repaid by June 2014.
Gearing at year end was low, at 34%. Shareholder equity increased by AED297m to AED6.7bn. Net asset value per share is AED2.55, compared with AED2.43 as of the end of 2011.
Abubaker Seddiq Al Khouri, Managing Director, Sorouh, commented: “It has been another year of strong profit growth and I am particularly pleased to see our recurring income grow. We have seen a great deal of operational progress across the development properties and National Housing projects, most of which are nearing completion.
“Sorouh’s delivery pipeline for 2013 is very strong, with over 7,000 units coming to market. These deliveries will strengthen cash flow and improve profitability. Meanwhile, the proposed merger with Aldar will enhance shareholder value by bringing together two complementary businesses that will have a more diversified and balanced portfolio along with significant future growth opportunities.” WAM/AM