Solidere shares soar above $15 despite downtown damage

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Solidere shares soar above $15 despite downtown damage

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(The Daily Star)-15/09/2020

Solidere shares soared above $15 per share Monday despite the mass damage in Beirut Central District caused by Beirut Port blast on Aug. 4.

According to the daily bulletin of Beirut Stock Exchange, Solidere A jumped by 1.63 percent to $15.50 while B increased by 1.57 percent to $15.44.

Total value traded for both shares stood at $952,203.

Brokers believe that many investors still prefer to buy properties in the downtown area despite the devastating explosion.

Many Lebanese investors argue that buying land and property in Beirut and other areas in the country is much safer than keeping their money in the banks.

Brokers say that investors are confident the political and economic situation in Lebanon will eventually improve once a new Cabinet is formed and once badly needed reforms are implemented.

Solidere recorded a net profit of $49 million in 2019 compared to a loss of $115 million in 2018.

The company said that it has seen significant land acquisitions in the second half of 2019 and the first four months of 2020 as many depositors decided to unfreeze their bank accounts and invest in real estate.

The financial statement prepared by Deloitte auditing firm said Solidere sold $234.4 million in 2019 compared to only $1.274 million in 2018.

Revenues from rented properties in 2019 fell to $53.215 million from $56.855 million in 2018.

Revenues from rendered services dropped to $7.724 million from $8.097 million in 2018.

Total gross revenues of the company in 2019 reached $295.404 million in 2019 compared to $66.236 million in 2018.

Total assets value of Solidere was $2.249 billion in 2019 compared to $2.481 billion in 2018.

Total liabilities in 2019 fell to $417.443 million from $698.650 million in 2018.