Solidere Annual Report 2007.Pdf

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Solidere Annual Report 2007.Pdf SHAREHOLDERS BOARD OF DIRECTORS GENERAL MANAGEMENT CHAIRMAN AND GENERAL MANAGER GENERAL MANAGER Prof. Prof. Wafic Wafic Sinno Sinno Avenue Av enue Chief Financial Officer Assistant General Manager Mir Majid Majid Arslan Ars Avenue for Operations lan A venue Ahmad Shawki St Ahmad Shawki St Shawki Ahmad Divisions reet St k Fawzi Daouk Street Daouk St ye nue ve Avenue h Ho h Financial Treasury Corporate Legal Administration Sales Marketing Urban Property Tendering Broadband Corporate Public Infrastructure and Operations Real Estate Port St rc tria W Kortas St W Kortas St Kortas W Port St Patriarch Hoyek St Pa Accounting Adnan El Hakim Street and Financial Finance and Business Management Management Contracting Network Reporting and Relations and Site Logistics Maintenance and Development Adnan El Hakim Street AAvenuevenue des des Francais Francais TrTripoliipoli St St Control Development and Procurement Systems Publications Communication Technical Services Trie rk A La Marseillaise St ParkPa La Marseillaise St THE Trieste St Toufic El Hibri El Hibri st khreddine St khreddine e Street um St Fakhreddine St Fa k St KhanEl ChouneEl Choune lo ye Dabbagha Mosque St Departments Abdallah BeyhumBeyhumSt StSt Fakhry Bey St Tijara St St Functions nby Street ey Fakhry B Fakhry El SadeqSadeq Chateaubriand St Chateaubriand St George Shehade St George George Shehade St Rafic Salloum St Street Allenby Street h Ho Alle Malak Rafic Sal Moutrane St St St St Street Omar Daouk triarc Azmi Bey Bey St St PaPatriarch Hoyek St MASTER W IT/IS Stock Investor Legal Human Land Town Contract Research Reporting Promotion Restoration Abdel Weygandey Saad Zaghloul Zaghloul St St gand St ch Street (MIS) Management Relations Counsel Resources Sales Planning and Property and Editorial and Advertising FochFo Uruguay St Abdel Hamid Hamid Karame St H. Kadi Kadi St St Argentine St Administration St Argentine St YoussefYoussef RamiRami St St WeygandWe Byblos St St ygand St Corporate Contract General Real Estate Development Recuperation Creative Artwork Media New St di Abou Jamil St Systems Structuring and Services Leasing Control and Production Developments WadiWa Abou Jamil St PLAN Relations Z Ka Kaddoura St ddou ra St Management Karame St George Akouri A Sh. R Kabbani Sh. R Kabbani kouri ance St Charles HelouHe Avenue FranceFr St Cadmus St St Souk Bazerkan Bazerkan El Maaniyin Maaniyin h lou A di Abou Jamil St ta venue Risk International Property Public Website Events Third-Party St Beirut WadiWa Abou Jamil St Capuchin St Al Omari Mosque St Capuchin St Al Omari Mosque St m 2 5 = Hussein ElEl AhdabAhdab St St HH=52m Management Projects Support Souks Control Services Development and Activities Developments Al Boustah PREWAR SHORELINE Al Bous Ch M M Jisr Jisr St St Al ArzArz Street Street khreddine St EtoileEtoile FakhreddineFa St Al Solhtah St Square NEW DEVELOPMENT - LOW DENSITY International Business Landscaping International International Banks m 2 5 = HH=52m Projects Support Development and Public Projects Projects FrFranceance St St Al Boustah Chaab StSt Bous Al t NEW DEVELOPMENT - MEDIUM DENSITY Reporting and Communication Banks St eet Martyrs'Martyrs' Space Design AlMaliya Maliya St St tr ree Square Publications Riad s Street Capuchin St St Army St s Naher IbrahimIbrahim Street International dess S m 8 Souk Abou Al Nasr 4 NEW DEVELOPMENT - HIGH DENSITY Souk Abou Al Nasr = HH=48m an Army St Khatchic Babikian St Projects Support Parliament St h Riad Al Solh St Khatchic Babikian St George Haddad St Parliament St George Haddad St DEVELOPMENT BELOW CORNICHE LEVEL St Al Maarada Al Street Mou A R Hout St A R Hout St ar R Mgsr Toubia ToubiaAoun St Aoun St h R R Church Amir R R R R R R R Riad Al Solh R R R ec R RESTORED BUILDING Al Maarad St R R R R R R R R R R Square B R (?) R Street l Bechara Al Mouhande ca d St Bachir St Streetreet Gouraud EvangelicalEvangeli PUBLIC OR RELIGIOUS BUILDING Amir Amine Amine St St Naccache St Boutros St St Boutros Boutros St St PUBLIC OPEN SPACE A St General A Akl Akl St St Akl Syria St Syria St Syria Lazariye St St Khalil St ni Ghalghoul St St fa Gibran PRIVATE OPEN SPACE Mere Gellas Gellas St St St Garden ye Cheikh Toufic Khaled St MkhallissiMkhallissiye St FouadFouad Chehab Chehab Avenue A Cheikh Toufic Khale Haddad Mar MarounMaroun Street ARCHEOLOGICAL SITE Said Syria St Syria St Syria Mar Debbas Ariss & Kanafani St Said DamascusSquare St Damascus St Damascus Mansour St St Kana & Ariss ve PEDESTRIAN STREET / LINK nue Charles Debbas Debbas St George George Haddad St Haddad George Bechara Al Khoury St Bechara Al Khoury St UTILITIES Includes proposed modifications to the New General Fouad Chehab Fouad Avenue Chehab Avenue Waterfront District sector plan. TABLE OF CONTENTS 02 introduction 05 consolidated financial highlights 06 chairman’s message in the last year and a half, we continued to... 12 beirut city center the fruit of an ambitious urban regeneration venture... 16 existing city center in reconstructing Beirut city center, Solidere has built on the intrinsic qualities... 25 waterfront district the Waterfront District is taking shape... 34 restoration the restoration of Beirut city center has confirmed the sustainability... 42 real estate strategy a consecration of the city center as a global retail district... 58 sale and rental strategy sales revenues rose, sustained by a substantial sales backlog... 64 developers’ projects a floor area of 2.5 million sq m has been so far the subject of development... 74 corporate funding, treasury and treasury stock the balance sheet at year end shows positions... 76 solidere shares and GDRs Solidere shares started the year... 80 management systems and studies Solidere has added new modules on its Enterprise Resource Planning... 82 solidere international Solidere International Limited (SI) was established... 91 independent auditors’ report 92 consolidated balance sheet 93 consolidated statement of income 94 consolidated statement of changes in shareholders’ equity 95 consolidated statement of cash flows 96 notes to the consolidated financial statements 128 board of directors – general management 01 Solidere Annual Report 2007 AS IT SPEARHEADS AND OVERSEES THIS PROJECT SOLIDERE IS BRINGING LIFE TO BEIRUT’S CENTRAL DISTRICT AND HOPES TO TURN IT INTO THE FINEST CITY CENTER IN THE MIDDLE EAST AT THE HEART OF The Lebanese Company for the Development and Reconstruction of the Beirut Central LEBANON’S CAPITAL, District s.a.l. (Solidere) is a joint-stock BEIRUT CITY CENTER company established on May 5, 1994. It is based on Law 117 of 1991, which regulates IS AN URBAN AREA Lebanese real estate companies aiming at the THOUSANDS OF reconstruction of war-damaged areas, in accordance with an officially approved master YEARS OLD, plan. Its share capital is US$1.65 billion. TRADITIONALLY The Company issues annual and semi- Furthermore, Solidere International Holdings A FOCUS OF annual reports to its shareholders. Solidere’s s.a.l. (Holding) owns 37.2% of Solidere BUSINESS, FINANCE, activities through the end of 2007 are also International Limited. Solidere International summarized in its fourteenth Annual Report. Limited in turn owns 45% of BREMS GOVERNMENT, International s.a.l. (Offshore); 77.27% of SI Al CULTURE AND This Annual Report includes consolidated Zorah Equity Investments, Inc. (Cayman financial statements, which consolidate Islands); and 5% of Al Zorah Development LEISURE. ITS the accounts of Solidere’s subsidiaries (Private) Company Limited (Private RECONSTRUCTION depending on its shareholdings. Solidere’s Shareholding Company), Ajman Free Zone, shareholdings in subsidiaries as at end UAE, of which SI Al Zorah Equity Investments, CONSTITUTES ONE 2007 were as follows: Beirut Waterfront Inc. also owns 44%. In addition, BREMS OF THE MOST Development s.a.l. 50%; Beirut Real Estate International s.a.l. (Offshore) owns 38% of Management and Services s.a.l. (BREMS) Amman Real Estate Management and AMBITIOUS URBAN 45%; Solidere Management Services s.a.l. Services Limited (AREMS), Amman. REVITALIZATION 99.95%; Solidere Management Services s.a.l. (Offshore) 99.84%; Solidere International The consolidated financial statements are PROJECTS OF Holdings s.a.l. (Holding) 99.47%; Solidere prepared and audited in accordance with OUR TIMES. International Limited, DIFC, 0.4286%. international standards. 02 03 Solidere Annual Report 2007 2007 2006 CONSOLIDATED Summary of Operations in US$ million FINANCIAL Gross land sales 288.5 255.2 HIGHLIGHTS Gross rental income 20.8 20.7 General and administrative expenses 18.1 14.3 Net income 224.2 132.2 Sales backlog 914.1 1,196.0 Stock Data per Share in US$ Earnings 1.445 0.8375 Shareholders' equity 11.81 11.37 Stock price range A shares 25.09-14.99 26.01-15.07 B shares 25.12-15.00 25.89-15.10 GDRs 24.75-15.00 26.30-14.45 Financial Data in US$ million Cash and securities 337.9 114.8 Accounts and notes receivable 318.7 348.9 Properties held for development and sale 1,404.7 1,457.8 Investment properties 150.3 153.8 Retained earnings 263.2 209.7 Legal reserves 75.5 59.9 Treasury stock (168.5) (162.7) Total shareholders' equity 1832 1768.6 Financial Ratios in % Gross profit margin 60.82 55.05 Return (interest income) on liquid assets 5.5 5.86 Debt to equity 0.38 1.57 04 05 Solidere Annual Report 2007 The year 2007 was a turning point in the life of the Company, as our international business came faster than we thought. Our activity had previously been entirely in Beirut where the market was facing a period of stagnation. All of a sudden, we had to tackle abroad a number of projects, some larger than Solidere. So we had to stretch our capabilities to the maximum in order to cater both for the local and new foreign business.
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