Embed Size (px)
Citation preview
OFFICIALSSocrates Bozizee, Central Africapresident’s son with Ahmad Hajj;Turkish Ambassador Inan Ozyildiz;Senator Adrien Gouteyron with adelegation from Groupe d’AmitiéFrance-Liban du Sénat.
BUSINESS & DELEGATIONSMGM Hospitality CEO Gamal Aziz andVP Middle East development DavidVely; StandardVision CEO andcreative director Adrian Velicescu;EDG Company founder and principalLee Penn Lanselle; LeisureConsultants representatives JohnHudaceck and John Ellis, BezarkCompany creative director ChristianHope, The Goddard Group chairmanGary Goddard and creative directorTaylor Jeffs (US); MCH Group CEORené Kamm, executive board StephanPeyer, MENA representative ZeidAbdul-Hadi with CEO ExpomobiliaJean-Marc Devaud; Roche HoldingLtd chairman Franz Humer(Switzerland); Louis Vuitton generalmanager ME and India DamienVernet; Menasart Fair managerLaure d’Hauteville with artisticdirectors Pascal Odille and Jean-Marc Decrop (France); ChivasBrothers Pernod Ricard CEOChristian Porta; The Visitor
Attraction Company director TimRusby (UK); BRC Imagination Artsmanaging director Bart Dohmen (Netherlands); Caritas presidentFather Simon Faddoul and generalsecretary Fadi Ibrahim with 20Caritas International members;Compagnie Immobilière Libanaisepresident Roland Abdéni and head ofdevelopment Alexandre Abdéni.
PROFESSIONALS & ACADEMICSTaberna del Gourmet owner Maria-José San Roman with architectJoaquin Gallego (Spain); St JudeChildren’s Cancer Center executivedirector Peter Decker with Dr. RamezAzouri; 50 MBA students fromWharton University (US); MarthaSchwartz Partners landscapearchitects Alexandra Steed andMatthew Getch; architect MarkHackett (UK), Grupo de DisenoUrbano Miguel Camacho (Mexico),PROAP Marco Buinhas and JuanIgnacio Zoilo (Portugal); IlexGuillaume Credoz (France); architectRoberto Floridia (Italy).
MEDIAFortune representatives AlenkaKrznaric and Jamie Cowan (UK); Le Figaro representatives NathanaelAknine (US); thirty internationaljournalists from Europe and theMiddle East.
VISITORS
Copyright © 2010 Solidere
The Lebanese Company for the Development andReconstruction of BeirutCentral District s.a.l.POBox 119493 Beirut 2012 7305 LebanonTel 961 1 980650 - 980660Fax 961 1 980661 - [email protected]
Photos
Mosbah AssiFares JammalMazen JannounFerran Quevedo
Clockwise from top left:
Messrs. Bozizee and Hajjwith Vice Chairman MaherBeydoun; French Senatedelegation with GeorgeNour, Wharton studentsand Caritas delegationwith Nabil Rached.
15years
SOLIDEREQuarterlyjuly-september 2010
BUSINESS & FINANCE
Share BDaily Closing Prices
SHARE PERFORMANCE DURING THE 3RD QUARTER 2010
VOLUMEPRICE
100,000
75,000
50,000
25,000
0
$24
$22
$20
$18
$16
July 1 Aug 2
185,586
Aug 31 Sep 30
VOLUMEPRICE
100,000
75,000
50,000
25,000
0
$24
$22
$20
$18
$16
July 1 Aug 2 Aug 31 Sep 30
Share ADaily Closing Prices
Share price (US dollars) Trading volume
Political uncertainties kept mostmarket participants on the sideline in the Beirut Stock Exchange, sharplydecreasing trading volume. Solidereshare prices dragged along, closingnear their one-year low.Share A fluctuated between a low of US$18.63 and a high of US$22.96,closing at US$18.89, a 16% decreasefrom the previous quarter. Share Btraded between a low of US$18.46 and a high of US$22.98, closing atUS$18.70, a 16.70% decrease from the previous quarter closing level. Trading activity decreased sharplyduring the quarter, with around 2.5 million shares of both classestrading in the local market, 65% less than in the previous quarter.The GDRs traded on the London Stock Exchange closed at aroundUS$18.72, a 15% decrease from the previous quarter.
Consolidated Balance Sheet US$December 31 2009 2008
AssetsCash and bank balances 177,622,687 291,703,019Prepayments and other debit balances 36,585,843 34,803,021Accounts and notes receivable, net 346,474,210 296,401,913Investment securities - 5,901,300Inventory of land and projects in progress 1,124,616,666 1,274,486,606Investment properties, net 366,099,244 216,787,077Investment in an associate 311,384,302 296,444,933Fixed assets, net 36,200,879 37,304,608Total Assets 2,398,983,831 2,453,832,477
LiabilitiesBank overdrafts and short term facilities 253,659,010 176,996,835Accounts payable and other liabilities 112,554,605 95,310,680Dividends payable 70,541,046 62,989,562Deferred revenues and other credit balances 150,280,315 256,523,727Loans from banks and financial institutions 1,987,023 2,347,054Total Liabilities 589,021,999 594,167,858
Shareholders’ EquityIssued capital at par value US$10 per share: 100,000,000 class A shares 1,000,000,000 1,000,000,00065,000,000 class B shares 650,000,000 650,000,000
1,650,000,000 1,650,000,000Legal reserve 112,304,146 94,067,105Retained earnings 266,525,826 272,280,032Foreign currency translation reserve 81,009 -Cumulative changes in fair value ofavailable-for-sale securities - 185,130Surplus on sale of treasury shares 11,723,032 11,653,751Less: Treasury shares (230,672,181) (168,521,399)Total Equity 1,809,961,832 1,859,664,619
Total Liabilities and Equity 2,398,983,831 2,453,832,477
Consolidated Financial HighlightsDecember 31 2009 2008
Summary of Operations US$ millionGross land sales 305.1 256.6Gross rental income 27.3 21.7General and administrative expenses 24.3 19.3Sales backlog 428.5 605.5
Financial Ratios%Gross profit margin 73.80 71.70Return (interest income) on liquid assets 4.60 4.60Debt to equity 0.11 0.13
Consolidated Income Statement US$ December 31 2009 2008
Revenues from land sales 305,081,555 256,635,633Revenues from rented properties 27,254,090 21,670,899Revenues from rendered services 3,975,801 7,426,645Provision for previously recognized sales (7,007,910) -Cost of land sales (80,646,511) (62,422,633)Charges on rented properties (9,522,142) (8,345,604)Cost of rendered services (4,670,872) (6,712,741)Loss on sale of investment properties (376,453) (2,108,123)Net revenues from operations 234,087,558 206,144,076
Share result from an associate 7,861,360 (1,798,576)General and administrative expenses (24,338,674) (19,351,682)Depreciation of fixed assets (5,057,481) (4,512,679)(Provision)/write-back of provision against land and real estate development cost (2,562,760) 9,604,171Write-off of land and real estate development cost - (8,036,672)Provision for impairment on collectively assessed accounts receivable (9,000,000) -Other expenses (4,737,547) (570)Other income 352,120 832,602Other taxes 37,044,009 55,496,110Interest income 37,044,009 55,496,110 Interest expense (11,382,997) (20,309,559)Profit before tax 221,965,588 214,327,398Income tax expense (32,754,575) (31,608,453)
Profit for the year 189,211,013 182,718,945
Basic/diluted earnings per share 1.2348 1.1781
ANNUAL GENERAL MEETINGHeld on July 19, 2010, 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 2009;showing a gross income of US$214.9 million before income tax, or US$182.2 million net income after tax.Approved the distribution of US$175.6 million in profits as dividends in the form of US$1.15 per share, to be effected starting October 15, 2010.Gave the chairman and members of the board of directors the authorizations stipulated in Articles 158 and 159 of theLebanese commercial code and ratified the agreements signed with the Company.Cleared the chairman and members of the board of any liability for matters relating to the Company management in 2009.
CHAIRMAN’S MESSAGEI am happy to report that Solidere and its group are standing on solidground. The adverse circumstances prevailing in the world sincemid-2008 have not hindered us from producing good results. It allboils down to what we have always said: strong fundamentals for the Company. The main strategy adopted by Solidere and its group,to maintain a high level of liquidity with a practically zero-debtsituation, has helped us withstand the financial crisis. The groupstands at an opposite end from many regional and global companiesand competitors who are suffering from lack of liquidity and highlevels of debt.
The Company’s financial statements illustrate its profitability andstrength, represented by a solid land bank and active sales, a high value real estate property portfolio, quality receivables and efficientcash management, high liquidity and no long-term debt. Valuecreation and preservation extend to maximizing Company profitsthrough conception and implementation of innovative real estateprojects, provision of quality development and property managementservices and introduction of new lines of business, all destined toensure growing revenue streams.
In Solidere International as in Solidere, our financial strength isreflected in a highly liquid cash position, no debt and a lean coststructure. The group has been able to weather the prevailing worldeconomic crisis and adapt its flexible development strategy to thechanged market circumstances. Our reputation is intact, and SI was profitable in its third year of operation.
Al Zorah was profitable in 2009 and will continue to enjoy a solid balance sheet.SI’s total current investment in Al Zorah constitutes 17.5% of the SI paid upcapital of US$700 million. SI and SI Al Zorah Equity Investments Inc havereceived AED1 billion from Al Zorah’s repatriated capital. SI will receive US$212 million from this transaction, which will increase cash available for SI to US$422 million as of July 2010.
In Egypt, progress on Westown and Eastown continues as infrastructure designefforts are underway. Two real estate projects were launched in Westown bySolidere International and SODIC, with others planned for launch in 2010, andwe expect to achieve good returns in the coming year.
In Saudi Arabia, our focus is on the core business of land development andvalue creation. Solidere International recently purchased a sizeable plot of landin Riyadh, which has promising development potential. In addition, the companywill be launching a state-of-the-art high end residential tower on Jeddah’sseafront later this year. Solidere International is assessing a number of otherpotential opportunities that match the country's local needs, including theintroduction of a new middle income product.
Solidere’s consolidated retained profits as of end 2009 equal US$266.5 million,consisting of its share of profits from affiliated companies in the SI group and of distributable profits amounting to US$192 million from its activities in Beirut.
To conclude, Solidere continues to be healthy in the middle of troubled regional and international economies, financial and real estate markets. We are confident that our sound strategies, policies and practices will allow our Company to pursue its strong performance and to achieve its objectives in building Beirut city center and enhancing its brand name.
Extracts from Annual Report 2009
DEVELOPMENT NEWS
A total of 388 projects, representing close to 2.96 million sq m of built-up area, are invarious stages of development in Beirut citycenter.
Status Projects BUA sq m
Completed 258 1,240,521
Under finishing 24 220,220
Under construction 11 100,772
Under restoration 5 14,251
Awaiting permit 24 183,371
Under study 42 750,833
No activity 15 105,991
Sold 9 345,578
Total 388 2,961,537
RESTORATIONIn Wadi Abou Jamil, restoration of the Maghen AbrahamSynagogue is nearing completion, as artists put finishingtouches on the interior of the temple sanctuary.
PROJECT LAUNCHINGDistrict // S residential development, designed by Allies and Morrison Architects (UK), was launchedon September 29.
WORKSHOPSMED-ENEC: Energy Efficiency in the Construction Sectorin the Mediterranean, a workshop on renewable energy,Biel, July 1.
DESIGN AWARDVladimir Djurovic Landscape Architecture was granted in September the 2010 American Society of LandscapeArchitects Honor Design Award for their design of theSamir Kassir Garden in Beirut city center.
DESIGN COMPETITIONSSolidere selected architectsGillespies (UK) for Roman Bathsand Omar Daouk Square; FumihikoMaki (Japan) for lot 1493 Mina El Hosn office building.
Design concepts were presented to the jury. For New WaterfrontDistrict Infrastructure andLandscape: Chris BlandfordAssociates (UK), J.M. Bonfils & Associates (France/Liban).
For Khan Antoun Bey Square:Gruppo di Diseño Urbano (Spain),Ilex (UK), Martha SchwartzPartners (US/UK) and PROAP(Portugal).
INVESTOR CONFERENCESolidere management attended the Deutsche Bank - GEMs (GlobalEmerging Markets) Conference,New York, September 15-17.
HOSPITALITY NEWSBeirut Hospitality Holding, a fullyowned Solidere subsidiary, wasincorporated in July as a realestate and tourism company, with a capital of US$10 million.
BUSINESS & SERVICESBLOM BankOnce Event Planner
INSTITUTIONSBrazilian Embassy
RETAILAfkartAmber FashionCasa OrientalChristian LouboutinClaude BertiCruise MedCrystal ElementsDaum & LaliqueGermanji ArtisanshipGG AccessoriesHermèsHookah Thé MarboutaJeans CoutureKickersLanvinLeïManoushMc Donald’sMe WeMimo Design & SabayaNatural CarePatrizia Pepe FirenzePepper NightclubPharmacie WazzanPoise DesignRosabelle CoutureSilkorTom FordTowa Gift ShopTulleVictory Exchange
OPENING SOON3ezz CaféAl QurashiAntoine HakimAntoine Karam House LinenAssayel Event PlannerKoukjianDiamond AAFransabankHermelique IstanbulHervé LégerIshtar Home CollectionLa DuréeLuxury ClothingReem AkraRelais FochRiver WoodsSiraj Hindi CarpetsSport et LoisirTiffany & CoVan Cleef & ArpelsWa3ed
FASHION & STYLELuxury retail outlets are springing up in the city center,confirming Beirut’s status as a shopping destination.Boutique openings and lively fashion events fulfillSolidere’s strategy to promote and enhance Beirut city center as a commercial district.
Ayman Baalbaki
Rose Issa
Hassan Hajjaj
Raeda Saadeh
BEIRUT EXHIBITION CENTERThe exhibition center featured works by local and international artists, further transforming the Waterfront District into a cultural destination.This large space is dedicated to the contemporaryart scene providing a platform for galleries andthe public.
ARABICITYNine contemporary artists from the Arab worldexplore their cultural heritage through video art,painting, photography and installation, curated byRose Issa Projects, September 22 – October 31.
Fathi Hassan
AIDA CHERFANHommage à Anna, Anna Abs,through July 15
Paintings, sculptures,photographs, Lebanese and international artists,July 20 – September 30.
AYYAMThe Beirut Sale, Art from theMiddle East, auction, July 1
Liberated Spatiality, Thaier Helal,through August 5
Summer Collection, August 9 –September 30.
INSTITUTO CERVANTESCiclo de Cine Argentino, La Fuga,2001 film by Graciela Maglie andJorge Goldenberg, directed byEduardo Mignona, July 1
Images Taurines, bull fightingimages, July 7 – August 31.
CONNAISSANCE DES ARTSAngels, Alidoro Catocci and Vital Surrealism, Raffi Tokatlian,organized by Italian CulturalInstitute, July 23 – August 31.
LAB ART POP-UP GALLERYMarc Quinn, Platinum Tower,September 28 – October 9.
MAQAMAll That Jazz - Music.2., GretaNaufal, through August 7.
PIÈCE UNIQUESuzanis and Sculptures, Lulu Yamine and Rita Awn, through July 4
Love This Island, collection of Cuban contemporary artists,July 9-23
Sabhan Adam and Jamil Kacha,paintings and sculptures,September 1-18.
ALWANECollective exhibition, throughSeptember 30.
Q CONTEMPORARYBooby Trap 2.0, collectiveexhibition, through July 17.
DESIGNER’S ENTOURAGELaunch of Azza Fahmi jewelrycollection for Preen, August 31.
EL BOURJBooksigningMarina di Beirut, Elena LópezGómez, Vert Desert, July 13
Embodyments, portraits of an alternate Lebanon, RashaShammas, Librairie Antoine, July 22
Proust Portrait Peinture, NaylaTamraz, Editions Orizons,September 30.
VIRGIN MEGASTORECanticles of the Sheepbooksigning, Zee Saliba, Xlibris, August 25.
BIELMenasart Fair, July 13-14Beirut Jewelry Week, July 20-23Luxury, September 15-19Art Deco, September 22-26.
BEIRUT ART CAPITAL
Anna Abs
Marc Quinn
Hassan Hajjaj
BEIRUT OUTDOOR SPACEDJ Carl Cox, July 3F*** Me I'm Famous, DavidGuetta, July 17Sasha and James Zabiela, August 7.
BIELThe Gazillion Bubble Show, July 2-4.
MUSIC HALL Liban JazzNils Petter Molvaer, trumpetplayer, September 29.
ROBERT MOUAWAD MUSEUMSinger Elie Rizkallah, pianistJohn Fayyad interpreting orientalclassics, September 15.
RAMADAN NIGHTSTania KassisHykayat Amareddine, Mini StudioFouad ZabadiAbdel Karim Al ChaarSahar TahaMay FaroukAhmad KaabourTraditional music from Aleppo Nabil KassisRanine Al ChaarPalestinian dance group AssayelIssa Ghandour and Madina bandFrench Flamenco Dame La Mano Ghada GhanemTrablous Street and Ajami Square,August 16 – September 12.
PERFORMING ARTSThe Beirut Souks was abuzz during the holy monthof Ramadan with a festival of traditional music.Contemporary music stars and international DJsalso performed in city center venues throughout the summer.
OFFICIALSSocrates Bozizee, Central Africapresident’s son with Ahmad Hajj;Turkish Ambassador Inan Ozyildiz;Senator Adrien Gouteyron with adelegation from Groupe d’AmitiéFrance-Liban du Sénat.
BUSINESS & DELEGATIONSMGM Hospitality CEO Gamal Aziz andVP Middle East development DavidVely; StandardVision CEO andcreative director Adrian Velicescu;EDG Company founder and principalLee Penn Lanselle; LeisureConsultants representatives JohnHudaceck and John Ellis, BezarkCompany creative director ChristianHope, The Goddard Group chairmanGary Goddard and creative directorTaylor Jeffs (US); MCH Group CEORené Kamm, executive board StephanPeyer, MENA representative ZeidAbdul-Hadi with CEO ExpomobiliaJean-Marc Devaud; Roche HoldingLtd chairman Franz Humer(Switzerland); Louis Vuitton generalmanager ME and India DamienVernet; Menasart Fair managerLaure d’Hauteville with artisticdirectors Pascal Odille and Jean-Marc Decrop (France); ChivasBrothers Pernod Ricard CEOChristian Porta; The Visitor
Attraction Company director TimRusby (UK); BRC Imagination Artsmanaging director Bart Dohmen (Netherlands); Caritas presidentFather Simon Faddoul and generalsecretary Fadi Ibrahim with 20Caritas International members;Compagnie Immobilière Libanaisepresident Roland Abdéni and head ofdevelopment Alexandre Abdéni.
PROFESSIONALS & ACADEMICSTaberna del Gourmet owner Maria-José San Roman with architectJoaquin Gallego (Spain); St JudeChildren’s Cancer Center executivedirector Peter Decker with Dr. RamezAzouri; 50 MBA students fromWharton University (US); MarthaSchwartz Partners landscapearchitects Alexandra Steed andMatthew Getch; architect MarkHackett (UK), Grupo de DisenoUrbano Miguel Camacho (Mexico),PROAP Marco Buinhas and JuanIgnacio Zoilo (Portugal); IlexGuillaume Credoz (France); architectRoberto Floridia (Italy).
MEDIAFortune representatives AlenkaKrznaric and Jamie Cowan (UK); Le Figaro representatives NathanaelAknine (US); thirty internationaljournalists from Europe and theMiddle East.
VISITORS
Copyright © 2010 Solidere
The Lebanese Company for the Development andReconstruction of BeirutCentral District s.a.l.POBox 119493 Beirut 2012 7305 LebanonTel 961 1 980650 - 980660Fax 961 1 980661 - [email protected]
Photos
Mosbah AssiFares JammalMazen JannounFerran Quevedo
Clockwise from top left:
Messrs. Bozizee and Hajjwith Vice Chairman MaherBeydoun; French Senatedelegation with GeorgeNour, Wharton studentsand Caritas delegationwith Nabil Rached.
15years
SOLIDEREQuarterlyjuly-september 2010
SOLIDEREQuarterlyjuly-september 2010
�es �iamants de �ikran, July ��ouis "uitton, July ��fficine �anerai, July ��!��oat #atches, July ���#� �chaffhausen, August ��oe Tahiti, August ��"�� Jewelry, �eptember �� �or All �ankind, �eptember �Jaeger��e�oultre, �eptember ��$ves �aint �aurent, �eptember ���oucheron, �eptember �
��ENIN��
GOLD SOUKSAtamian �<clusives�oucheron�hronora�#� �chaffhausen Jaeger��e�oultre �es �iamants de �ikran�oe Tahiti�olidere �nformation �enterTag �euer�ervcorp!��oat #atches"�� Jewelry
WEYGAND STREET�fficine �anerai
ALLENBY STREET�ottega "eneta�ouis "uitton�odeo �rive
FAKHRY BEY STREET�alenciaga�troTumi$ves �aint �aurent
SOUK ARWAD�i5uadro
SOUK AYYAS�oss �range�clat de �ode$oung �angs
SOUK EL FRANJ�cchi di �rada
SOUK TAWILA�erriAreThierry �ugler
PATRIARCH HOYEK�amsung
OPENING SOONAntoine #adih �alamounA>ar Jewellery�ali �alima�af@ ��oco and �assia�iadAme�iamond �reations�arah �hanal�inecraft�� �outi5ue�emmes�eorge �akim�Alain �hilippe�ublot�mad �aadaraniJ� �ioielliJoaillerie �oukar>elJuicy �iamonds�e �tay�omo�s�ouawad��hopard�ukhi �isters�ada ��ame �t� �ou>annar�r �a �oi�ierre �ermani�lanet �iscovery�omellato�ami Abboud"oyageur $eprem Jewelry$essayan Jewelry%oughaib �esign Jewelry
NE�C�MER�
�eirut �ouks consecrate �eirut and the citycenter as a regional business, shopping,leisure and cultural destination.
The �ouks four�day grand opening featured�lie �aab, �ashion �a>e, Jean �ichel Jarreand street performances, �eptember ��� .
����� INA���RA�I�N
ELIE �AA��lie �aab showcased his fall�winter���� prBt�?�porter collection.A great number of personalities andfashionistas attended the red�carpetevent, a premiere in the �iddle �ast.
�A�HI�N�A�EThe four�day event, organi>ed by �aya Tueny, ACshti and �olidere in �ouk Arwam, featured fashion,photography, interior design and �J sets by local and internationalemerging talents.
JEAN MICHEL JARREA pioneer of electronic music,Jarre put on a grand concertfeaturing lights, laser and video animations.The event was followed by aspectacular fireworks finale.
STREETPERFORMANCES
SOLIDEREQuarterlyjuly-september 2010
