Lebanese developer Solidere's profit plunges 16.9%

Solidere, the largest publicly traded company in Lebanon, reported a 16.9 percent decline in its 2011 net profit from the year earlier, on the back of slower economic growth and political instability in the region and the country. The Beirut-based developer, founded by former Lebanese Prime Minister Rafiq Hariri to rebuild the Beirut Central District area after the end of a 15-year civil war in 1990, said its after-tax profits reached US$162.6m last year compared with US$195.5m in 2010, the company said in an e-mailed statement. "These results come despite tense and unstable domestic and regional conditions,'' the company said in the statement. "These conditions had a negatively impact on economic, commercial and real estate activity in general." Solidere will continue to negotiate with a number of investors and expects to conclude several agreements by the end of 2012, which will boost the company's sales and increase the volume of its securities, the company said. Solidere's total revenue from real estate sales reached US$242m, or 67,000 sqm of built areas in 2011, compared to US$337m, or 132,000 sqm of built areas, in 2010. Revenue from rents in 2011 rose 22 percent to US$50m, the company said. From / Arabian Business