July-September quarterly

Transcription

1 July-September 2011 quarterly

2 2 BUSINESS & FINANCE CHAIRMAN S MESSAGE Solidere and its group of companies delivered positive financial and operational results during last year despite challenging local and regional economic and geopolitical conditions. Our strategy remains consistent and focuses on creating shareholder value by investing in our land bank, increasing recurring income, diversifying into complementary business lines and expanding our presence outside Lebanon. Your Company reported net profits of US$196.5 million, on revenues of US$337 million. The top and bottom lines respectively increased by 8% and 10% year-over-year, however these results were largely driven by land sales realized from previous years. Currently, we are in negotiations with several investors who have been assessing a number of plots in Beirut city center. Our rental income increased by 50% to US$41 million and we expect this will reach US$50 million in 2011 driven by rental contracts from the Beirut Souks. The fully leased South Souks have become a vibrant leisure and retail destination for residents and tourists. We expect the North Souks will become operational next year. In addition, a number of real estate projects will be launched, including a residential building, an office building and a mixed-use development complementing Beirut Souks. Our policy will focus on preserving liquidity and balancing cash flows in order to invest in revenue generating projects that will positively impact Solidere s future financial results. New Waterfront District infrastructure, including the Eastern Marina, is under design and will be completed in two years. A number of temporary cultural and lifestyle activities were initiated to establish connectivity and drive footfall between the district and the traditional city center. Beirut Hospitality Company s activities were launched in 2010, contributing to the city center s appeal and supporting our income portfolio. Three restaurants were opened and a few more are planned to follow. Solidere International was profitable in its third year of operation with a net profit of US$30.7 million and a consolidated net profit of approximately US$6.5 million before tax. The company maintained its strong balance sheet with US$425 million in cash, without any bank debt at year end. Al Zorah s capital was reduced last year from AED4 billion to AED2 billion, resulting in the repatriation of AED1 billion repaid in cash to Solidere International and SI Al Zorah Equity Investments Inc. Al Zorah is being repositioned from an urban center into a waterfront tourist destination. We launched the project this year, and are currently focused on infrastructure works and developing the resort component. We are monitoring the situation in Egypt and are optimistic that demand for real estate products will not be affected in the medium and longer terms. Solidere International is evaluating opportunities in the region, particularly in Saudi Arabia where we see good potential to invest given the government s current fiscal expansion policy. We remain confident of your Company s prospects, backed by a solid asset base and an effective strategy and development approach that have kept us profitable since inception, allowing Solidere to distribute cumulative dividends of US$924 million in cash and 4.1 million bonus shares to date. ANNUAL GENERAL MEETING Held on August 1, 2011 in Biel on the Beirut New Waterfront, Solidere s annual general meeting, presided over by Chairman Nasser Chammaa and attended by the Board of Directors: Approved the audited financial statements for the year 2010, showing a gross profit of US$231,7 million before income tax, or US$196.5 million net profit after tax. Approved the distribution of US$147 million out of profits as dividends, in the form of 40 cents per share held, of either class A or B, plus one A share for every 30 shares held, of either class A or B, to be distributed to all shareholders registered as at August 19, 2011, with the distribution to be effected starting October 31, Gave the Chairman and members of the Board of Directors the authorizations stipulated for in Articles 158 and 159 of the Lebanese Commercial Code. Cleared the Chairman and members of the Board of Directors of any liability for matters relating to the Company management in DEVELOPMENT A total of 391 projects, representing close to 2,995,876 million sq m of builtup area, are in various stages of development. STATUS PROJECTS BUA SQ M Completed 267 1,315,040 Under restoration 6 12,543 Under construction ,448 Awaiting permit ,574 Under study ,218 No activity 9 23,201 Awaiting submission ,852 TOTAL 391 2,995,876 CONFERENCES As part of the efforts to increase and enhance communication with the investment community, Investor Relations hosted an Analyst day on July 28, that included a brief outlook on the Lebanese real estate industry and a company specific presentation followed by a Q&A session with Management. A site tour of Beirut city center was organized afterward to introduce new and ongoing developments and show the overall progress in the area. The event was attended by 15 analysts from local, regional and international research houses. Nasser Chammaa July 2011 Extracts from Annual Report 2010 In line with its commitment to market participants, the Company received at its premises during the quarter a number of investment funds, research houses and other financial institutions. Solidere Urban Development Division Head Angus Gavin presented Learning from Beirut: Rebuilding Beirut Central District at the Medacity forum, Beirut, September

3 NORTH SOUKS BUILDING SITE SHARE PERFORMANCE - 3RD QUARTER 2011 PRICE $18 $17 $16 SHARE A DAILY CLOSING PRICES 451, , ,914 VOLUME 200, , ,000 Regional political unrest and persistent fears over the world economy pulled down all stocks in the Beirut Stock Exchange. Solidere shares were under pressure, moving to a two-and-a-half year trough on low volume, despite reputable local and international financial institutions reports estimating the share at higher value than the market price. $15 $14 PRICE $18 $17 $16 $15 $14 July 1 August 11 September 30 SHARE B DAILY CLOSING PRICES 244,245 July 1 August 11 September 30 50,000 0 VOLUME 200, , ,000 50,000 0 SHARE A Fluctuated between a low of US$15.04 and a high of US$17.74, closing the quarter at US$15.18, a 13.10% decrease from the previous quarter. SHARE B Traded between a low of US$14.98 and a high of US$17.58, closing at US$15.06, a 13.99% decrease from the previous quarter. Trading activity remained almost steady during this quarter, with around 3.3 million shares of both classes trading in the local market. GDRs Traded on the London Stock Exchange, closed at around US$15.04, a 14.10% decrease from the previous quarter. Share price (US dollars) Trading volume

4 4 NEW WATERFRONT DEVELOPMENT

5 WATERFRONT SALES Three development lots in Sector D were sold by Solidere in the last quarter, for a total sale value close to US$170.8 million: Block 149, Plot 2, covering a land area of 1,922 sq m, was purchased by Marfaa 1553 SAL to be developed into a residential building or a hotel totaling 11,944 sq m of floor area. Block 155, Plot 3, covering a land area of 2,525 sq m, was purchased by Park Sea View SAL to be developed into a residential building totaling 13,774 sq m of floor area. Block 155, Plot 4, covering a land area of 2,545 sq m, was purchased by Versus Mare SAL to be developed into a residential building totaling 13,436 sq m of floor area.

6 6 DESIGN & STYLE CITY CENTER NEWCOMERS Agent Provocateur Barbara Bui Beauty Line Cartier Cherry on the Rooftop Cocteau Pucci Versace Collection OPENING SOON Antoine Hakim Art Stone Babylon Banque Libano-Française Cibco Deluchy Couture Don Edwardo Ets. Nakhlé Gillioni Giuseppe Zanotti Jeans Couture Lola et Moi Manasseh Jewelry Marni Moe Shour Couture Qatar National Bank Roberto Boticelli Sandro Selamlique

7 BEIRUT SOUKS NEWCOMERS Antoine Wadih Salamoun Calvin Klein Diadème Dunkin Donuts Eclat de Mode Joaillerie Moukarzel Le 8ème tea lounge Mouawad/Chopard Mukhi Sisters Occhi de Prada Pomellato Swatch Yeprem Jewelry Zoughaib Design OPENING SOON Eden Park Jouet Club Le Stay Librairie Antoine Sweet Tea

8 8 BEIRUT SOUKS THE VENUE Classic Car Show FAKHRY BEY Fashion Weekend 125 years of Mercedes Benz MOMO S AT THE SOUKS Jewelers Souk FAKHRY BEY Beirut Souks Retailers Fashion Weekend, July 1-2 A journey through 125 years of innovation with Mercedes-Benz, September 3-17 THE PLATFORM Souk El Tayeb, weekly organic produce market. Bras for a Cause fashion show, breast cancer awareness campaign, September 24

9 THE VENUE Classic Car Show, 40 vintage cars along with postcards and photographs, July 8-31

10 BEIRUT EXHIBITION CENTER

11 SALOUA RAOUDA CHOUCAIR The Retrospective, September 27 November 13 BURNING Jean Boghossian, recent works on paper, August 10 - September 18 Round table, August 11 REBIRTH Lebanese XXIst Century Contemporary Art, to July 30

12 12 ART & CULTURE PIÈCE UNIQUE SMS du Liban FAIRS & SALONS 3rd TEDxBeirut Salon AWARENESS Repercussions FAIRS & SALONS MENASART Regional and local artists drew collectors from around the globe as well as international media. Talks were held, Biel, July MONROE HOTEL Art and Social Justice, Chawky Frenn, July 28 3RD TEDxBEIRUT SALON Gathering of professionals, contributors, corporate representatives and executives, Monroe hotel, August YEARS ON AUSTRALIA TALK Mark Hachem gallery, September 27 BIEL Dream Banks and Insurance, September 7-10 Beirut Sign, September 22-25

13 EXHIBITIONS PIÈCE UNIQUE SMS du Liban, photographs by Juan Saliquet, July Atomes de vie, Lamia Haddad, August 5-19 Unbound, Shereen Audi, September 9-17 AIDA CHERFAN Collective show, through Sptember 30 AYYAM The Beirut Sale: Contemporary Art from the Middle East, auction, July 15 The Person Within, Asma Fayoumi, September 8 October 15 MARK HACHEM Retro-active, group show, paintings sculpture and photography, through July 19 Inception, curated by Marianne Nems, August Years on Australia and the Battle of Beirut, in collaboration with Australian Ambassador H.E. Lex Bartlem, September PLATINUM TOWER Aafak, July 28 September 30 Q CONTEMPORARY A Short Story, Qaswra Hafez, September 8 October 1 AWARENESS REPERCUSSIONS Performance, Martyrs Square, July 17 SKYBAR The social experiment, July 18 Get loud with Skoun for life, July 25 MARK HACHEM Internal World and Creative Autism, Ali Tlais, fundraiser to ameliorate the art facilities at the Lebanese Autism Society, July 20 PIÈCE UNIQUE Artists for Peace, September 23 October 9

14 14 AL FRESCO DINING CHERRY ON THE ROOFTOP Le Gray INDIGO ON THE ROOF Le Gray THE ROOF Four Seasons FLY Virigin

15 ON THE ROOFTOPS Summer is the ideal time for al fresco dining in rooftop bars and restaurants, and enjoying panoramic views of the city center, the new waterfront and surrounding bay and mountain landscapes. These include, Fly (Virgin), Cherry on the Rooftop and Indigo on the Roof (Le Gray), Iris (Al Bourj), The Roof (Four Seasons), Skybar (New Waterfront), People (Aishti).

16 16 PERFORMING ARTS URUGUAY STREET This pedestrian area behind Samir Kassir Square was inaugurated as a nightlife destination, September 8-9. Live band and other activities are entertaining guests each weekend. New spots include, Cassis, Classic Burger, Julep s cocktail bar, La Sandwicherie, Patricks, The Bronx, Tinto, Zucca.

17 THE PLATFORM WARDA September 2 BEIRUT JAZZ FESTIVAL Rabih Abou Khalil, September MUSIC HALL LIBAN JAZZ Tord Gustavsen Trio, September 18 MOUAWAD MUSEUM Elie Rizkallah, classic Arabic music concert, September 14

18 18 OPEN SPACE BEIRUT Future Cities OPEN SPACES Zeitouneh Square FUTURE CITIES - BEIRUT Solidere Chairman Nasser Chammaa with CNN Richard Quest in Wadi Abou Jamil garden, during the filming of the interview for Future Cities.

19 ZEITOUNEH SQUARE One of five public squares under development by Solidere in Mina Al Hosn, is now open to the public. Located along the Old Sea Shoreline and designed by Gustafson Porter, Zeitouneh Square embodies a truly innovative concept. The square benefits from an open set up with no fences; bold black and white paving patterns create a fractal landscape as contrasting colors interact with the terraces to accentuate the different levels. The square also features pools, stone benches and a stone bridge that leads visitors to the black and white terraces. Each terrace provides a platform of open space for different activities, while the customized lighting system adds to the site s exceptional splendor.

20 VISITORS TRIBUTE TO NABIL BOUSTANY To commemorate the late Solidere Vice-Chairman s achievements and dedication, a new street carrying his name was inagurated in the presence of his family, officials and Solidere Chairman and Board members, September 8. Left to right: Unveiling the Nabil Boustany Street signage. Chairman Nasser Chammaa handing the commemorative plaque to Fadi Boustany, current Vice-President and son of the late Nabil Boustany. VISITORS OFFICIAL German ambassador Birgitta Maria Siefker-Eberle; Romanian ambassador Nicusor Daniel Tanase; Egyptian ambassador Mohamad Toufic; 16 Iraqi politicians with members from the Friedrich Nauman Foundation. BUSINESS DELEGATIONS Colony Capital, LLC associate vice president Richard Acosta and MENA region managing director Sylvio Sharif Tabet; president of Interntational Society for Soil Mechanics and Geotechnical Engineering Professor Jean-Louis Briaud; Vision Maker worldwide president Daniel S. Martinez with director of business development Asia Ryan Sauter(US); High representatives of Goldman Sachs Group, London; Vision Maker chairman and CEO John Cora, president Daniel Martinez and director of Business Development Asia Ryan Sauter; AM International CEO Zyad Limam (France); OM human relations Matteo Sormani; Schenell reinforcment processing equipment chief financial officer Loriano Rossetti (Italy); Arup mechanical engineer Miriam Ozanne; Thornton Tomasetti director Lea Postwa (UK); Rudnap Group deputy CEO Sansra Berberovic (Serbia); Rönesans Hoding president Erman Ilicak (Turkey); Sika CEO to Lebanon Walid Zakka with Near East area general manager to Egypt Nick Varley; KPMG Financial Advisory Services supervisor Layal Hawi and senior Lea Khoury. Ambassadors Birgitta Maria Siefker-Eberle and Mohamad Toufic with AR Solh. MEDIA CNN International journalist Richard Quest, Future Cities (US); journalist Rachel Spence (UK). PROFESSIONALS & ACADEMICS Anoushka Hempel Design interior designer Erin Barr with a colleague (UK); Iosaghini Assicati, architecture and design architect Massimo Iosa Ghini with a colleague (Italy). COPYRIGHT 2011 SOLIDERE The Lebanese Company for the Development and Reconstruction of Beirut Central District s.a.l. PO Box Beirut Lebanon Tel Fax solidere@solidere.com.lb PHOTOGRAPHERS Mosbah Assi Ahmad Azakir Raya Haddad Mazen Jannoun David Xavier