(MENAFN- Khaleej Times) Sorouh Real Estate, which is facing an eminent merger into Aldar Properties this month, reported its fourth quarter 2012 net profits growing 21 per cent year-on-year to Dh118.9 million, on revenues from public housing projects.
The second biggest property developer recorded another strong yearly performance with net profit of Dh507.5 million, 32 per cent up on full year 2011.
The revenue of Dh3 billion, in the year, was mainly driven by national housing projects, compared to the handover of Sun and Sky units in 2011.
Leasing income increased by 25 per cent year on year to Dh217 million 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 Dh600 million of annualised recurring revenues by the end of 2015," it said in a statement to ADX.
The value of the investment properties portfolio increased by nearly Dh800 million to Dh4.1 billion, mainly as a result of the addition of Boutik Al Ain and leased units in Sun and Sky into the portfolio.
The year continued to see strong investment in properties under development, which bodes well for delivery in 2013, to boost cash flow, recurring revenues.
Sorouh's financial position remains robust and the balance sheet is strong. Cash collections in 2012 amounted to Dh3.2 billion and the company had Dh1.3 billion of cash on its balance sheet as of 31 December 2012.
The company has started to amortise its club loan making repayments of almost Dh400 million to date. The loan will be fully repaid by June 2014.
Abubaker Seddiq Al Khouri, Managing Director, Sorouh, termed its performance as "another year of strong profit growth".
"We have seen a great deal of operational progress across the development properties and National Housing projects, most of which are nearing completion." He said "Sorouh's delivery pipeline for 2013 is very strong, with over 7,000 units coming to market."
"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," the managing director said.
Project update
Sun & Sky Towers are now an established community with over 1,000 families living at the development along with key commercial tenants.
The Gate Towers are nearly 95 per cent complete and advancing rapidly. At present, all sections of the penthouse bridge structure have been raised and locked in place.
During the quarter, Sorouh and Evolvence Knowledge Investments Limited (EKI) announced the launch of Repton School Abu Dhabi due to open in September 2013 on Shams Abu Dhabi. The second campus will open in 2014 for children in year three and over.
The Alghadeer development is 90 per cent complete and progressing well, with infrastructure development and the construction of the residential buildings moving at a rapid pace. The development is on track for phased completion and delivery in the first quarter of 2013.
All infrastructure works at the Saraya master-planned development, near the Abu Dhabi Corniche, are complete and five plots are currently under construction by sub-developers.
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