Abu Dhabi’s Sorouh Real Estate profit declines over high provisioning

Sorouh-Real-EstateSorouh Real Estate, Abu Dhabi's second largest developer by market value, has announced its financial figures for the fourth quarter but the results remained disappointing for the firm. The firm posted a net loss of AED199m ($54m) during the period as compared to a net profit of AED28.1m during the corresponding period last year.

The decline in its net profit is attributed to AED370m of provisions and impairments it had taken last year. The real estate firm reported 61 per cent decline in its full year revenue while its revenue for the three months to December 31 fell 51 percent to AED214m, according to a release issued by the firm.

Sorouh's Managing Director Abubaker Seddiq Al Khouri, said, "In the short-term, 2011 and 2012 will be years of delivery for us. This means significant cash generation for the business and profits for shareholders."

The firm, he said, has set a target to construct 1500 houses by the end of current year and continue to focus on its existing real estate portfolio.

Property rates continued to decline since the global financial crisis in 2008. Property value slashed more than 45 per cent in Abu Dhabi, the capital of the UAE.