Solidere Analysis

Solidere

Equity Research

Sector: Real Estate Country: Lebanon January 28 2009

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Current price*: Target price: Upside potential: Recommendation:

USD 14.54 USD 29 99% STRONG BUY

Share data

Listing (A & B shares): Beirut Stock Exchange Listing GDRs: London Stock Exchange Reuters code: SOLA. BY; SOLB BY; SOLAq.L Bloomberg code: SOLDA.LB; SOLDB.LB; SLED LI Market cap: USD 2,409.5 mn Number of shares outstanding: 165,000,000 Free float: 100%

Building on strong fundamentals

Rebuilding the Beirut City Center Created in 1994 for the purpose of reconstructing the Beirut City Center, Solidere has emerged as the principal actor on the Lebanese real estate scene by providing quality infrastructure and transforming the Beirut Central District into a world-class City Center. A regional footprint With a view to mitigating the risk of a depleting land bank, Solidere has embarked into a regional venture through Solidere International, to export its know how and processes to neighboring projects in the Gulf and the Mediterranean basin. A strong financial status

Share price information*

YTD 1M 3M 12M 52 – Wk range -12.09% -13.81% -30.96% -32.25% USD14.54-40.00

Solidere share performance

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Solidere enjoys high levels of liquidity with a strong asset base, minimal liability, and a good visibility on future cash inflows. We value Solidere at USD 29 per share Our fair value estimate, derived from the DCF of Solidere standalone projections, in addition to the book value of Solidere International, equals to USD 29 per share, resulting in a 99% upside potential. It is worth noting that any positive outcome from Solidere International would have an important impact on the Solidere share price. We, accordingly, assign a Strong buy recommendation to Solidere. Key performance indicators:

2007 2008e 2009f 2010f 2011f 2012f

- Total Revenues (mn USD) - EBITDA (mn USD) - EBITDA margin - Net Income (mn USD) - ROaA - ROaE - BVPS (USD) - EPS (USD) - P/E - P/BV 310 227...