Sorouh Second-Quarter Profit Rises on More Home Completions - Bloomberg

Sorouh Real Estate PJSC, Abu Dhabi’s second-biggest property developer by market value, said second- quarter profit more than tripled as the company increased deliveries of completed properties to buyers.

Net income increased to 110.4 million dirhams ($30 million), or 4 fils a share, from 30.8 million dirhams, or 1 fil, a year earlier, the company said in a statement today. The average estimate of six analysts was for a profit of 155 million dirhams, according to data compiled by Bloomberg.

Property values in Abu Dhabi, the capital of the United Arab Emirates, have declined 45 percent since the market’s peak in mid-2008, after banks curtailed lending and demand waned. The market probably needs three years to absorb the homes now being built, thwarting price and rent increases, Chief Operating Officer Gurjit Singh said in a July 6 interview.

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