IFA HR posts loss of $67m for 2010
Dubai, September 30, 2010
Kuwait-based IFA Hotels & Resorts (IHA HR) has reported a loss of KD19.5 million ($67.3 million) for the 2010 financial year.
Earnings per share decreased to 45.2 fils (16 cents) this year, while shareholder equity decreased to KD50.79 million ($175.2 million). The company’s total assets, however, increased by 10 per cent to KD400.85 million ($1.38 billion), it said in a statement.
“The company adopted the completed method of accounting as per the recommendations of the International Accounting Standard Board (IASB), and so we were not able to recognize revenue based on proportion of construction completed for units sold,” said Ibrahim S Al-Therban, chairman of IFA HR.
“The losses we reported this year were largely due to a capital loss on the sale of land. The land was sold to generate further liquidity for the company to be able to repay financial commitments and finance ongoing projects,” he added.
Talal Jassim Al-Bahar, vice chairman and CEO of IFA HR, said: “Despite tough economic conditions, this year has been our busiest year yet in terms of moving projects from construction to completion. To date, we have completed projects in excess of $1billion including two five-star hotels and five luxury residential developments comprising more than 1200 units.”
“Important to note is how this significantly reduces the company’s construction exposure, with more than 70 per cent of our projects in South Africa and on the Palm Jumeirah now complete. With 2011 poised to be equally busy, we expect to see these results steadily improve in the coming year,” he added.
In line with this increased activity, IFA HR has created IFA Hotel Investments (IFA HI), a wholly-owned subsidiary that will provide strategic direction to all of the company’s operational assets and expand its portfolio within the hospitality industry.
IFA HI will encompass and lead, on a worldwide scale, IFA HR’s operational asset portfolio including its hotels, hotel condominiums, commercial, retail and food and beverage ventures. IFA Hotel Investments will also oversee the IFA Collection, which manages the company’s private residence clubs, vacation clubs and lifestyle ownership products.
The Middle East was a busy region for IFA HR this year as the company completed its Golden Mile, Palm Jumeirah project. Good progress was also made on the Fairmont Palm Jumeirah hotel, which is scheduled for completion next year, and handover of the exclusive residences that flank the hotel is well underway, the statement said.
In The Palm Residence, IFA HR opened its second Dubai-based food and beverage outlet – Mezze Mia – while in the Mövenpick Hotel & Residence Jumeirah Lakes Towers the company launched loft and duplex apartments as well as a private residence club.
In Lebanon, IFA HR opened its initial project, the 230-room Four Seasons Hotel Beirut with Kingdom Hotel Investments. Also in Lebanon, IFA HR will soon handover the villas and townhouses in its exclusive residential development Alabadiyah Hills.
Al-Therban continued: “Heading into the new financial year, we will continue to focus our efforts on the completion of our existing projects worldwide and as a result, transition the company into its operational stage.”
“To take advantage of the opportunities we see in both existing and emerging markets and to maximize our shareholders’ future returns, we will also focus on master-planning our land bank so that we are ready to start new construction when the market recovers,” he concluded. – TradeArabia News Service
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