Ezdan RE posts FY gains of QR409mn

Ezdan Real Estate has reported an 18% jump in net profit to QR408.75mn in 2012 mainly on robust gains recorded by its associate companies.

The company has recommended 1.3% cash dividend, which will have to be approved by shareholders at the annual general assembly, whose date has not yet been finalised.

Of the QR408.75mn net profit, residential and commercial property contributed QR223.37mn; suites and hotels (QR135.27mn) and investments (QR50.11mn)

Gross profit from rents, otherwise, fell 9% to QR453.16mn on 15% shrinkage in rental revenues to QR519.91mn. There was also a 23% fall in operating expenses to QR96.65mn; but other operating incomes more than doubled to QR27.90mn, according to its financial statement.

Gross profit on construction activities shrank 48% to QR0.16mn with construction revenues dropping 89% to QR3.51mn and construction costs also declining by a similar proportion to QR3.35mn.

Although there was a 27% jump in gain on disposal of investment property to QR106.81mn; the company’s operating profit was down 4% to QR560.13mn.

However, other income more than tripled to QR18.55mn and there was a fresh QR49.06mn gain from the profit of associate companies, while gain on revaluation of investment property fell 20% to QR31.24mn.

General and administrative costs were up 17% to QR98.44mn but finance costs fell 21% to QR145.42mn.

Total assets were valued at QR38.89bn comprising investment property of QR33.20bn, investments of QR2.73bn in equity accounted investees and available-for-sale investments of QR2.32bn.

Total equity stood at QR27.75bn on a capital base of QR26.52bn and earnings-per-share was QR0.15 at the end of December 31, 2012.