Solidere profits
awake from slumber

Will distribute a third of profits

Solidere’s annual net profits for 2014 surged to $97 million, an increase of 144 percent, according to a statement released Tuesday by the company.

Net consolidated profits, which include Solidere International, the company in charge of projects abroad, reached $113.7 million.

The climb in profits is mainly attributed to land sales in Beirut, which totaled $170 million, an increase of 80 percent. Seven land sales contracts were made with international and local investors. Mounir Doueidy, General Manager of Solidere, said: “The majority of the lands we sold are small and located in Wadi Abou Jmil. They will be used to develop either small apartments or villa projects.” Three transactions for large plots were also made.

Apartment sales recorded $4.3 million in the areas of Minet el Hosn and Saifi.

Rent income grew by 12 percent to reach $61.5 million. “The main reason behind the increase is attributed to opening the cinema complex. The new souks are becoming highly frequented, which also affected the rents of car parking lots,” he said. Spaces at the waterfront Zaitunay Bay were also leased for several events.

Solidere’s board will suggest to the General Assembly to distribute a third of the dividends to shareholders, according to the statement.

Solidere’s policy is to reduce operating costs by cutting down on administrative and maintenance expenses. This has led to a 25 percent drop in overall operating expenses, not seen in three years. In line with the company’s conservative policy, provisions or extraordinary reserves reached $22 million.

The company’s land bank of 1.8 million square meters has a value of $7 billion. Leased built assets have a market value of $1.4 billion. Debts to banks have shrunk by four percent to $649 million. The company had cash liquidity of $147 million, dropping nine percent compared to 2013.