Sorouh exceeds analyst expectations by reporting 75% growth in first half 2008

The improved profit performance represented an earnings per share of 42 fils (22 fils in the first half of 2007) and was derived from operating activities with no asset revaluations.

Revenue from land sales, as well as rental income, grew by 57% to Dhs1,693m (H1 2007: Dhs1,081m).

Abubaker Seddiq Al Khouri, Managing Director for Sorouh, said:

"This is another positive financial performance for Sorouh, marking continued progress in our development as one of the leading real estate developers in the region. Our key financial performance indicators have improved over the period. We are optimistic about the performance for the rest of the year."

Mounir Haidar, Sorouh's Chief Executive Officer, stated: "The first half of 2008 is one which can be characterised by the development of strong ties with leading international world-class organisations. These relationships will deliver financial and operational benefits far into the future. During the first half of 2008, Sorouh's strategic initiatives included:
• The launch of Lulu Island development, which will become one of Abu Dhabi's landmark residential and tourism destinations.
• Agreement with Metro-Goldwyn-Mayer Studios Inc. (MGM) and Rubicon, Inc. (Rubicon) to explore the development of entertainment opportunities within Sorouh's real estate portfolio.
• Forming of a Joint Venture Company with Tabreed to provide district cooling to sectors of Shams Abu Dhabi and other projects.
• Forming of a Joint Venture Company with the leading property group Goodman for the exclusive development and management of Business and Logistics Parks in the GCC.
• Acquisition of a strategic shareholding in LLJ Property LLC, the major Abu Dhabi-based real estate agency.
• Acquisition of a 60% stake in leading Abu Dhabi construction firm Pivot Engineering and General Contracting Company LLC."
Sorouh's market capitalisation was Dhs23.2bn at 30 June 2008, and total assets grew 53% to Dhs11bn, compared to Dhs7.2bn at 31 December 2007.