Abu Dhabi - Arabstoday
Abu Dhabi’s Sorouh Real Estate, which is in merger talks with larger rival Aldar Properties, posted a 30 per cent rise in quarterly profits on Sunday, adding to a string of higher earnings from UAE property firms in recent days. Sorouh, the second largest property developer by market value in Abu Dhabi, reported first-quarter net profit of Dhs83.6 million ($22.76 million), compared with Dhs64.3 million in the prior-year period The results missed four analysts’ forecasts for average profit of 87.83 million dirhams, according to a Reuters poll. Sorouh shares were up 0.88 per cent on the Abu Dhabi bourse at 0824 GMT. Quarterly revenue doubled to Dhs967.2 million, with revenue from national housing projects generating Dhs62 million in gross profit for the quarter. The developer said it was on track to reach its target of 500 million dirhams of recurring income by 2014. “We spent 650 million dirhams on work-in-progress in the first quarter and capex for 2012 remains the same,” Chief Financial Officer Richard Amos said on a conference call. “Our cash position is robust, we have no plans to raise finance.” Sorouh has previously said it plans 1.8 billion dirhams in 2012 capital expenditure. The firm’s cash balance at the end of the first quarter was 1.5 billion dirhams. Sorouh, which entered into merger talks with Abu Dhabi’s largest developer Aldar last month, said the talks are underway, but did not give any further details.