Abu Dhabi's Sorouh Real Estate posted its second-biggest profit ever in the fourth-quarter on higher land sales.
Full-year revenue, 86 per cent of which was from the sale of land, almost quadrupled compared with the 17 months to the end of 2006 to Dh2.32 billion, said Abu Dhabi's second-largest property developer by market value. The company did not give quarterly data.
"The main reason for the increase in net profit is the income from the sale of land plots as a result of converting the Shams project from leasehold to freehold," the firm said in a statement on the Abu Dhabi bourse website.
Shams is a residential project on Reem island next to Abu Dhabi city.
The company sold land, houses and apartments worth Dh6 billion in 2007, it said, without explaining why the sum is not fully reflected in 2007 revenue.
Net income in the three months to December 31 was Dh483.52 million, a 2.5 per cent decline over the year-earlier period, Reuters calculated based on previous financial data.
Prime Group had forecast in a Reuters survey last month that Sorouh would make a fourth-quarter profit of Dh265.29 million.
Full-year profit was Dh1.26 billion, or Dh0.50 per share, compared with Dh975 million, or Dh0.39 per share, in the 17 months to the end of 2006, the company said.
Sorouh's biggest profit was in the fourth quarter of 2006.
Sorouh made a profit of Dh773.48 million in the first nine months of 2007, according to financials posted on the stock market regulator's website. (Reuters)
Land sales drive Abu Dhabi Sorouh's profit