According to the report, Solidere enjoys high levels of liquidity with minimal debt and a good visibility on its future cash inflows.
Its revenues are mainly generated from land sales in the Beirut Central District which growing scarcity due to its finite land bank is expected to lead to higher prices and larger profits in the coming years.
Furthermore, Solidere is planning its long term strategy by diversifying its revenue mix to compensate for the erosion of its land bank. The core aspect of Solidere's long term objectives includes an international growth strategy through its associate, Solidere International. Increasing rental income with the introduction of the Souks and a growing focus on project management & consulting services.
The valuation performed does not take into consideration future potential cash flows from Solidere International due to the lack of visibility on the regional real estate scene and the nascent status of the Company.
Any positive outcome from Solidere International would have an important impact on the Solidere share price.
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FFA Private Bank initiates coverage on Solidere
- Lebanon: Wednesday, February 04 - 2009 at 09:45
- PRESS RELEASE
FFA Private Bank has initiated coverage on Solidere with a strong buy recommendation and a fair value estimate of $29 per share implying a 99% upside potential to January 28, 2009 closing of $14.54.
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About FFA Private Bank:Established between Beirut and Dubai with a capital base of $27m and assets under management and/or administration of around $500m, the FFA Private Bank Group was founded in 1994 as a regulated financial institution and acquired a bank status in 2007. FFA Private Bank is one of the region's leading players in the fixed income markets. Its main field of activities are: Capital Markets, Wealth Management, Asset Management, Real Estate and Corporate and Merchant Banking.
For more information please contact
Alexandra Matta Al-Hawa
Marketing Coordinator
FFA Private Bank s.a.l.
Regulated by Banque du Liban - List of Banks No. 129
Marfaa 157 Bldg, Beirut Central District
P.O.Box: 90-1283, Beirut Lebanon
Tel: +961 1 999345
Fax: +961 1 985193
Posted by Rima Ali Al MashniWednesday, February 04 - 2009 at 09:45 UAE local time (GMT+4)
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