Solidere distributes 86 percent of profits as dividends to shareholders

15 July 2009

BEIRUT: The giant real estate company Solidere decided to distribute $176.5 million, or 86 percent of the firm's profits, as dividends to all its shareholders. The decision was taken during Solidere's general assembly which was held BEIL Monday. This would mean that each stock holder will get $1.15 for each share.

The company recorded a pretax profit of $214.3 million in 2008 and achieved a cash liquidity of $292 million.

Solidere stressed that apart from the good results the company did not mass any debt.

"These positive results come to assure the company's ability to achieve sustained profit and draw investors to Beirut Central District. The company has already started to invest in many projects in the BCD," Solidere said in a statement.

Solidere signed $294 million worth of investments in the past six months and is still negotiating with other investors who are keen to buy more properties.

It stressed that the company has $731 million worth of contracts that have been signed earlier and not yet collected.

"This cash will turn into profits for the next three years once the conditions of the contracts are met," the statement said.

It added that Solidere International, which focuses its operation outside Lebanon, has cash liquidity close to $350 million at the end of 2008.

The statement said Solidere International did not mass any debts or losses despite the global credit squeeze which hit many real estate companies.

Solidere announced that it plans to complete the southern part of Beirut commercial souk which will be officially opened in the last semester of 2009.

It added that many of the 250 shops in the souk intend to open in June of this year.

The company will also continue building the northern part of the souk which will feature movie theaters, a theme park and grand store. This project is expected to boost the revenues of the company especially from the rents of shops.

Solidere added that values of its shares on Beirut Stock Exchange are expected to rise once these projects are completed.

Solidere A and B shares closed at $24.03 and $23.99 respectively on Tuesday's trading on the Beirut Stock Exchange.

Investors in general say that the outcome of the parliamentary elections in Lebanon has apparently relaxed the market. The Daily Star