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IFA HOTELS ASSETS OF 368 MILLION DINARS

15 November 2009

IFA Hotels & Resorts announced first-quarter results amounted to a total loss of KD 2.4 million and decreased earnings per share by 128% from 19.49 fils in the first quarter of 2008 to -5.55 fils during the same period this year. In contrast, shareholders equity increased to $ 69.13 million compared to KD 66.7 million Kuwaiti Dinars for the first quarter of last year, also increased the value of total assets of the company by 17% to reach 367.96 million Kuwaiti dinars.

The chairman of the board of IFA Hotels and Resorts, Ibrahim Saleh Tharban said: (the losses experienced this quarter due mainly to the changes introduced by the International Accounting Standards lately that gave up the mechanism for assessing the revenues of companies in proportion to what they have achieved in each project they are working on. But as many of our current phases are completed, we anticipate that the current results will increase at a steady pace during the next quarters of this year, and will deliver projects that improve the results of our revenues with the IAS ».

It is worth mentioning that IFA Hotels & Resorts was used for the adoption of the completion rate for each project to account for the proceeds proportionately between the rate of what has been achieved in construction project, for what was sold from the units, and what has been collected from the first payments are non-refundable. IFA HR adopted the recommendations of the International Accounting Standards related to agreements on real estate construction 15 of the International Committee to regulate the development of the annual financial reports, and those recommendations on revenue recognition in accordance with the mechanism of calculating contracts completed in full, and ensure that such a methodology to recognize the proceeds and profits from only upon delivery of the completed project entirely to the owner. It is natural that the company is to utilize this new mechanism to calculate the contracts carried out only in full, you will see real-time fluctuations in the values of revenue and quarterly earnings as a result of non-counting proceeds during periods of establishment of enterprises, but those revenues rise to levels higher than normal rates in the periods in which the delivery of projects completed.

The Deputy Chairman and Managing Director of IFA Hotels & Resorts Talal Jassim Al-Bahar said: «The rest of the year will be a promising opportunity for IFA Hotels and Resorts, as they will during the second and third quarters complete and hand over the Golden Mile, Palm Jumeirah, and the beginning of project delivery Vermont residences, Palm Jumeirah, and will be followed by delivery of the first phase of the project in the Al-Abadeya residential hills in Lebanon ».
IFA Hotels & Resorts enhanced its investments in South Africa to purchase an additional 5.25% stake in Boschendal Ltd to raise its stake to 37.33% and the company acquired last August to share additional increase of 14.92% of Raimon Land, the company specialized in the development of luxury condominium in Thailand to lift the company’s total share to 41.08%.

The two takeovers are considered one of the stages in the plan of IFA Hotels and Resorts, which aims to enhance the geographic extent as a global multi-use resorts development, the benefit of the acquisition the new IFA Hotels and Resorts in Raimon Land of diversity and the spread of the company’s activities in many countries of Asia.

Al-Bahar concluded: «we will focus during the remainder of the current fiscal year to complete and hand over our many projects in the Middle East, and that in Africa and Asia, which has experienced continuous growth, and generate unlimited opportunities, and we will work to diversify our larger focus on providing new investment opportunities in our current, and we are confident that our shareholders will reap the benefits of their support for the company in future financial periods ».