$116 million loss
Projects under development will not be halted
Solidere’s audited financial statements for 2017, show a loss of $116 million, a sharp decline from the $75 million in profits it posted in 2016.
Solidere’s numbers, released Wednesday, resemble those of 2015, when losses were almost the same.
Total revenues dropped 75 percent to $68 million. This decline is mainly due to the lack of land sales. In 2016, land sales reached $203 million from 11 transactions.
Property rent revenues rose seven percent to $60 million. Revenues from rendered services climbed 14 percent to $7.4 million.
Total assets remained stable at $2.7 billion, including land and projects in progress, valued at $1.2 billion.
Solidere’s financial statements list three associates and two joint ventures. The associates are BCD Cinemas (40 percent), ASB-Downtown (24.5 percent) that manages restaurants, and Solidere International (39.1 percent) that has operations outside the country, or outside BCD.
Joint ventures include Beirut Waterfront Development (50 percent), which develops projects within the reclaimed area, and Beirut Real Estate Management and Services (45 percent), a property management company. Solidere also bought a minor stake in STOW Waterfront Holding (1.68 percent), developer of Zaitunay Bay.
Solidere International’s profits slipped 40 percent to $21.6 million.
The company is focusing on finishing up its ongoing projects including the Department Store and the infrastructure of the second phase of the waterfront.
“Phase II’s completion is expected within the next two years,” said Maher Beydoun, Vice Chairman.
The company followed a prudent policy over the past few years, shying away from starting new projects and cutting operational expenses.
Solidere’s share prices hovered between $8 and $9 over the last few months.
Reported by Yassmine Alieh
Date Posted: Jun 13, 2018