Solidere released its consolidated financial statements for the year of 2020, revealing a downtick in its bottom line from a net profit of $42.14M by December 2019 to a loss of $15.90M over the same period this year.
Total revenues registered $412.20M on December 2020, compared to $295.40M last year. The total cost of revenue expanded, ending the period at $274.09M compared to $152.855M. Solidere still has a portfolio of land available for sale in the new waterfront totaling 1.35 million square meters of buildable area.
Revenues from land sales reached $381.94M by December 2020, compared to $234.45M over the same period in 2019. Solidere’s Investor Relations (IR) affirmed that all buyers were a mix of Lebanese and foreigners. Meanwhile, Revenues from rented properties decreased from $5321M in 2019 to $22.81M 2020 as the company is still unable to collect rent from shops and restaurants due to unstable situation in the downtown of Beirut.
As to the balance sheet, Total assets retreated by 9.29% on December 2020 to stand at $2.04B compared to $2.25B on December 2019. This is mainly justified by the drops in Accounts receivables and in Inventory of land and projects from $129.94M and $1.11B on 2019 to $55.29M and $887.06M on December 2020, respectively. In details, the decrease in “Inventory of land and projects assets” is due to the noticeable rise in the price of building materials, especially with the scarcity of dollars needed to import them.
Moreover, the increase of sales has helped Solidere to close entirely their debts as the term bank loans account in the liabilities side has dropped from $155.48M in 2019 to zero on December 2020. As a result, total liabilities decreased by 41.73% in 2020 to stand at $243.226M compared to 417.44$ in 2019.
Worth mentioning that Solidere issued a Press Release which it invites the Shareholders of both Class (A) and (B) shares to attend the Ordinary General Meeting that will be held on Friday, August 20, 2021 at 9.30 A.M. at Cinemacity – Beirut Souks, Allenby street, Beirut Central District, in order to discuss the Board of Director’s report for the company’s activities during the year 2020.
The growth in the real estate sector was positively reflected on the shares of Solidere. In details Solidere A and B shares started 2020 at $7.3 and $7.29 to reach $18.50 and $18.29 on December 30, 2020.
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