The Lebanese Company for the Development and Reconstruction of the Beirut Central District S.A.L. (Solidere) released its audited consolidated financial statements (which take into account the company’s subsidiaries) for the year 2023, reporting a net loss of $15.08 million, compared to a net loss of $5.17 million in 2022. In detail, revenues from property and land sales plunged by 82.98% y-o-y to $5.04 million, with rental revenues dropping by 14.95% to $26.73 million, gains on sale of investment properties shedding 75.17% to $0.25 million, and revenues from provided services dropping by 70.95% to $2.45 million. In parallel, cost of revenues dropped by 53.80% in 2023 to $33.18 million, thanks to some $9.03 million reduction in the cost of land sales. Consequently, the company recorded a net operating income of $1.30 million in 2023, compared to a net operating loss of $1.32 million in 2022, with general & administrative expenses contracting by 53.27% to $19.53 million and the share of income from associates standing at $20.63 million in 2023, compared to $7.75 million in 2022. In addition, the company wrote-back some $10.01 million in provisions for risks and charges in comparison with some $2.32 million in write-backs in 2022. This, however, was more than outweighed by the $14.85 million provisions for impairment recorded in 2023 coupled with the $14.36 million losses on foreign exchange compared to gains of $29.52 million in 2022.

On the balance sheet front, the Group’s consolidated assets narrowed by 0.50% in 2023 to just above $1.93 billion as cash and bank balances dropped by $19.19 million, net investment properties decreased by 2.53% to $593.45 million and land inventory & projects under construction declined by 0.23% to $854.05 million (circa 44.12% of total assets). Net accounts and notes receivable, however, increased by 153.02% in 2023 to $6.41 million and investment in affiliated companies rose by 6.42% to just above $378 million. On the other hand, the Group’s total liabilities increased by 30.39% in 2023 to $261.94 million, noting that these balances include dividends payable totaling $57.22 million. The Group’s shareholders’ equity ended the year 2023 down by 4.06% at $1.67 billion. Consequently, the company’s book value per share stood at $10.14 at end of 2023, implying a price to book value multiple of 8.87 for Solidere “A” shares and 8.94 for Solidere “B” shares based on the closing prices of November 27, 2024.