Solidere profits more than double
Remaining assets valued
at $8.9 billion
Solidere presented its audited financial statement for 2013 to shareholders on Monday, showing a 148 percent increase of total after-tax profits to $39.7 million. This brings total profit by Solidere and affiliate companies (mainly Solidere International) to $42.6 million.
Administrative expenses were cut by 17 percent, reaching $28 million. The statement said: “The firm will continue to lower administrative expenses and operational costs by postponing or canceling several development plans it intended to carry out in the upcoming five years as of 2014.”
Rent income slightly dropped by five percent. This was compensated by trimming operation and maintenance cost of rent producing property by 15 percent.
Land sales went up by 48 percent to $95 million, signaling the improvement of investor appetite to buy developable lands in the Central District.
Solidere’s land bank still accounts for 1.8 million buildable square meters worth $7.2 billion. Rent-producing built property is valued at $1.5 billion, including the cinema complex. Solidere has commissioned the FFA bank to evaluate the downtown company's assets, which reached $8.9 billion.
“The firm preserves a high level of cash flow estimated at $165 million and a portfolio of financial bonds resulting from land sales worth $505 million,” said the statement. This brings the total value of cash flow and bonds to $670 million versus debts to banks of $673 million, or seven percent of asset value.
Reported by Yassmine Alieh
Date Posted: Jul 07, 2014