Abu Dhabi’s Sorouh Q3 Net Rises 13 Pct; Misses View
Sorouh's Q3 net profit 67.3 mln dirhams vs 59.3 mln dirhams yr-ago; Q3 revenues 890.4 mln dhs vs 387.8 mln dhs; Results miss average analysts forecasts
October 31, 2011 9:04 by Reuters
Sorouh Real Estate , Abu Dhabi’s second-largest developer by market value, posted a 13.4-percent rise in third-quarter net profit aided by higher handovers and increased rental income but the results missed analyst’s forecasts.
Abu Dhabi’s second largest developer by market value posted a net profit of 67.3 million dirhams ($18.3 million)compared with 59.3 million dirhams in the same quarter last year, it said in a statement on the Abu Dhabi bourse.
Analysts forecast average net profit 129.6 million dirhams net profit for the third quarter.
The developer’s third-quarter revenues more than doubled to 890.4 million dirhams compared with 387.8 million dirhams in the same period in 2010. That was offset by a surge in cost of revenue which increased to 720.4 million dirhams as against 196 million dirhams for the year earlier period.
“We continue to see pick-up in sales and leasing demand during the period, partly driven by our innovative lease to own and rent to own products,” Abubaker Seddiq Al Khouri, Soruouh’s managing director said in the statement.
Most Abu Dhabi developers have been focusing on completion and delivery of existing projects after suffering big losses during the global financial crisis, which put an end to a six-year construction boom.
Sorouh said earlier this month that it expects projects awarded by the government to be a core part of its developments in the short term.
Abu Dhabi’s real estate market may see an additional 11,000 homes in the fourth quarter, a report by property consultants Jones Lang LaSalle said.
Sorouh shares have lost 40 percent of its value so far this year. (Reporting by Stanley Carvalho, Editing by Dinesh Nair)