The Lebanese Company for the Development and Reconstruction of Beirut Central District S.A.L. (SOLIDERE) announced its audited financial results for 2023. The company reported an increase in net losses to $36.8 million, up from $11.1 million in 2022. The consolidated audited financial results for 2023 also showed a net loss of $15.1 million, compared to $5.2 million in 2022. The increase in losses is mostly due to almost no real estate sales and lower rental income, reflecting Lebanon’s ongoing poor general and economic conditions. Also, the continued presence of multiple exchange rates and their impact on the financial results’ calculations have contributed to these losses.
In 2023, the company continued its efforts to revive the Beirut Souks and surrounding areas to boost commercial activity. It attracted well-known global brands and signed lease agreements for more than 80% of the commercial units in the souks by mid-2024. The work to prepare most of the commercial units in the Beirut Souks for business operations before the end of 2024 began, but recent Israeli attacks on Lebanon have negatively impacted progress, which could delay the recovery of the commercial markets. Significant improvements in rental income are expected in the coming years after the markets open.
As of December 2023, SOLIDERE’s total assets stayed at $1.8B, almost matching 2022 levels. Total liabilities were $261.8M in 2023, down from $191.75M in 2022. Shareholders’ equity fell to $1.5B from $1.6B in 2022.
Total revenue from real estate sales fell to $5M in 2023, down from $29.6M in 2022, while total revenues from rents declined in 2023 to $26.7M from $31.4M in 2022 due to the closure of most commercial establishments in downtown Beirut.
Despite these challenges, SOLIDERE holds valuable assets, including land ready for sale or development worth at least $2.5 billion, rent-generating properties valued at least by $1 billion, and a portfolio of 4.5 million shares of the company’s stock worth no less than $400 million (banking dollars). The company also has an investment in SOLIDERE International, valued at least by $450 million, based on the assessment of current projects at the end of 2023.
The company also has good cash liquidity, with $62.3 million at the end of 2023 and with no outstanding loans or other banking facilities. Moreover, the company recorded a net value of $1.3M from its sales and leasing activities, excluding provisions and other expenses.
SOLIDERE continued to follow its policy of reducing general and administrative expenses, especially by cutting operating and administrative costs. General expenses significantly decreased to $19.5 million in 2023 compared to $40.7 million in 2022.
It is important to note that presence of multiple exchange rates in the Lebanese Forex market complicated financial calculations, but SOLIDERE aims to unify these rates over the next two years to prepare financial statements that comply with international standards.
Lastly, the company remains committed to developing the Beirut Central District and protecting shareholders’ rights, despite the significant challenges Lebanon faces. The company’s diverse assets and prudent policies support its ongoing efforts to revive commercial life in central Beirut.
Financial Highlights (in $)
| 2023 | 2022 | |
| Total Assets | 1.79B | 1.82B |
| Total Liabilities | 261.76M | 191.75M |
| Total Equity | 1.53B | 1.63B |
| Net Losses | (36.78M) | (11.13M) |
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