Reuters: Financial Services and Real Estate: REFILE-UPDATE 1-Abu Dhabi's Sorouh's Q1 profit rises 30 pct

Reuters: Financial Services and Real Estate Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

REFILE-UPDATE 1-Abu Dhabi's Sorouh's Q1 profit rises 30 pct Apr 29th 2012, 05:14 Sun Apr 29, 2012 1:14am EDT (Fixes typo in paragraph one) * Sorouh Q1 net profit 83.6 mln dirhams vs 64.3 mln dirhams * Q1 revenue doubles to 967.2 mln dirhams * Says merger with Aldar Properties underway DUBAI, APRIL 29 - Abu Dhabi's Sorouh Real Estate, which is eyeing a state-backed merger with rival Aldar Properties, posted a 30-percent rise in quarterly net profit riding on revenue from government projects and higher rental income. Sorouh, the second largest property developer by market value in Abu Dhabi, made a first-quarter net profit of 83.6 million dirhams ($22.76 million) compared with 64.3 million dirhams in the same period in 2011, it said in a statement on the Abu Dhabi bourse Sunday. However, the earnings missed forecasts of four analysts who average expected net profit of 87.83 million dirhams for the quarter, according to a Reuters poll. Quarterly revenue doubled to 967.2 million dirhams, with revenue from national housing projects generating 62 million dirhams in gross profit for the quarter. The developer said it was on track to reach its target of 500 million dirhams of recurring income by 2014. Sorouh, which entered into merger talks with Abu Dhabi's largest developer Aldar last month, said the talks are underway, but did not give any further details. "The evaluation process to look at the legal and business aspects of a potential merger is now underway and the ultimate outcome of this process will take into account the best interests of shareholders," the company said. Aldar more than doubled its first-quarter net profit on land and residential sales to the government. Sorouh's Managing Director Abubaker Seddiq Al Khouri said the company would deliver 7,000 units by end 2013. Abu Dhabi-based property firms have relied heavily on government projects to rescue them from a property market slump witnessed in the emirate. Property prices in Abu Dhabi are expected to fall another 11 percent from here, a Reuters poll showed in January. Sorouh shares have risen 31 percent year-to-date on the Abu Dhabi bourse. ($1 = 3.6730 UAE dirhams) (Reporting by Praveen Menon; Editing by Dinesh Nair) Link this Share this Digg this Email Reprints

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