Flip through the latest issue of Gulf Weekly.
Seef Properties (Seef) has reported a net operating profit of BD7.86 million for the year 2009 as compared to BD8.33 million last year.
Announcing the results for the year 2009, chairman of Seef Properties Abdulrahman Fakhro said: "This represents a mild reduction of 5.6 per cent over the last year, and given the economic situation that the region has sailed through in the last year, we believe that these levels of operating results are acceptable."
The property rental income reduced marginally from BD9.18 million last year to BD9.04 million in 2009.
"This is caused by strategic changes adopted by several regional retailers who have relocated their operations out of Bahrain. The year 2009 witnessed series of austerity measures brought in by many entities that included review of ongoing projects, reduced spending on advertising and publicity," said Mr Fakhro.
"Most businesses have now been adopting a very cautious approach in offering any new commitments. Such steps that were expected in an economic scenario witnessed globally, have certainly impacted the operations and performance of most retail facilities.
"The property market is still in the stage of correction."
As an outcome of the changes in the valuations, the company's investment property has been impacted by recognition of unrealised fair-value adjustment of BD809,330 in the year 2009. The fair-value gains recognised during 2008 was BD7.19 million.'
As a result of the above, the net profit for the year 2009 stood at BD7.05 million compared to BD15.72 million in 2008. The basic earnings per share for the year 2009 were 15 fils per share as compared to 34 fils per share at end-2008.
The board of directors has recommended in their meeting held on March 1, a dividend payment of 5 fils per share subject to approval by the shareholders at the annual general assembly.
During the year 2009, the wholly-owned subsidiary Fraser Suites Seef commenced its commercial operations, offering high-class fully-furnished serviced apartments in the newly-opened tower block which is part of the Seef Mall. "The company looks forward to a sustained growth and stability in the economy with a strong belief that all economic sectors return to more realistic and credible levels," Mr Fakhro added.
