Solidere announced its audited financial results for the year 2022, revealing a decrease in losses amounting to $11.1 million compared to $21.5 million at the end of 2021. However, losses totaled $5.2 million in the consolidated financial results for 2022. The continued losses are attributed to the ongoing decline in real estate sales due to the persisting deterioration of general economic conditions, especially in Lebanon and the region. Additionally, fluctuating exchange rates have had an impact on the financial results calculation.
Total assets for Solidere Lebanon stand alone registered $1.81B on December 2022, compared to $1.85B last year while total liabilities stood at $191.75M in December 2022, down from $216.61M in December 2021. Meanwhile, shareholders equity totaled $1.62B by end of 2022 compared to $1.63B in 2021.
The total revenues from Real Estate sales decreased $29.59M compared to $85.2M in the year of 2021, while total revenues from rent expanded in the year of 2022 and reached $31.4M despite the closer of most of companies and commercial enterprises in Downtown Beirut.
The company holds strong cash liquidity, maintaining a level of $62.2M as of the end of 2022, and it has no outstanding loans or other banking facilities. Moreover, the financial data shows that the company recorded a net value of $5.9M from its operating activities in sales and leasing, excluding provisions and other expenses.
Solidere persisted in its strategy to trim both public and administrative expenses, with a particular focus on reducing operational and administrative costs as well as overall expenses as the number of employees has remarkably dropped from 441 by end of 2021 to 219 employees by December 2022. However, with the company adjusting its employees’ salaries and paying end of service indemnities, administrative costs increased to $40.7M in 2022.
It is important to note that the multiple exchange rates in the Lebanese Forex market weighs on the company’s balance of payment. However, Solidere is aiming to unify the exchange rate adopted for her calculation of balance of payment and income statement so that its financials comply with the international standards.
Lastly, the company continues to put efforts to face the major challenges beyond its control and the negative impacts on economic activities, which Lebanon and the region are currently confronting. This is in line with its commitment to developing the central Beirut area and preserving the rights of its stakeholders.
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