quarterlyJuly-September 2012

2

BUSINESS & FINANCE

ANNUAL GENERAL MEETINGHeld on July 30 in Biel, Solidere’s annual general meeting,

presided over by Chairman Nasser Chammaa and at-

tended by shareholders, resolved to approve the audited

financial statements for 2011, showing a net profit of

about US$162 million after tax; approve the distribution

of dividends in the form of 25 cents per share held of

either class A or B, plus one share B for every fifty shares

held, to be distributed to all shareholders registered as at

August 14, 2012, the distribution to be effected starting

October 15, 2012; give the Chairman and members of the

Board of Directors the authorizations stipulated for in

Articles 158 and 159 of the Lebanese Commercial Code;

clear the Chairman and members of the Board of Direc-

tors of any liability for matters relating to the Company

management in 2011.

The general meeting elected board members for the next

three years term as follows: Nasser Chammaa, Mounir

Douaidy, Maher Beydoun, Basil Yared, Joseph Asseily,

Raphael Sabbagha, Oussama Kabbani, Makram Abboud,

Fadi Boustany, Raja Salameh and Maher Daouk. The

members of the Board of Directors re-elected Nasser

Chammaa as Chairman and General Manager, Maher

Beydoun and Fadi Boustany as Vice-Chairmen, Raphael

Sabbagha as Secretary General, and Mounir Douaidy

as General Manager.

Ernst & Young and Deloitte and Touche were assigned

by the General Assembly as external auditors.

CHAIRMAN’S MESSAGE EXTRACTSAdaptability, pro-activity and diligence are key principles that drive our business. Solidere is on

solid financial grounds and continues to deliver positive results as it remains focused on invest-

ment programs at home and abroad. Our strategy is to add value to our land bank and seek di-

versification through income-generating projects, geographic expansion and new business lines.

The Company reported net consolidated profits of US$158.8 million. The drop from the previous

year is due to a decrease in recognized land sales, US$242 million vs US$337 million in 2010,

however at a greater profit margin due to higher sale prices. Land sale transactions in the last

quarter of 2011, plus previous deals recognized during the year, represent 67,000 sq m in BUA.

Moving forward, investor interest, particularly in the Waterfront District, remains heightened,

based on future potential and a belief in the country’s positive medium and long-term prospects.

Waterfront District infrastructure and landscaping is to be completed within three to four years.

Zaitunay Bay launched its quayside restaurants, with the yacht club planned to open in 2013.

The district is a major destination for pedestrians, sports enthusiasts and outdoor family

recreation. Its appeal will increase after the opening of new projects. Beirut Souks’s number

of visitors has increased due to a communication strategy, the organization of festive events,

a regular stream of activities and cultural exhibits in its Venue. A further magnet of the Souks,

the Entertainment Complex with its 14 movie theaters is set to open in early 2013, and the

design of the Department Store is underway.

Solidere International achieved net profits of US$11 million and maintained financial strength

with no leverage and a cash balance of US$350 million. Investment efforts are focused on Saudi

Arabia, where it is currently involved in several residential projects and is in negotiation on two

others. In the UAE, Al Zorah is pushing through with infrastructure works, with the completion

of two marinas, the parkway, and the path to Emirates Road. Hazmieh Development in Lebanon

obtained authorities’ approval on the master plan. Solidere Homes, a new line of business for

private and public sector affordable housing, was established.

As we assess all these achievements, we remain diligent in steering Solidere forward and we

continue to appreciate the central role of our stakeholders in supporting our endeavors in mak-

ing Beirut city center a place where people want to work, live, and visit.

Annual Report 2011

PRICE VOLUME

SHARE PERFORMANCE | 3RD QUARTER 2012

$15.0

$14.0

$13.0

$12.0

$11.0

$15.0

$14.0

$13.0

$12.0

$11.0

80,000

60,000

40,000

20,000

0

80,000

60,000

40,000

20,000

0

July 2 July 31 August 29 September 28

July 2 July 31 August 29 September 28

SHARE B | DAILY CLOSING PRICES

Share price (US dollars) Trading volume

SHARE A | DAILY CLOSING PRICES

PRICE VOLUME

Solidere shares continued their slow drift downwards, the geopolitical

instability in the region and locally continuing to affect investor senti-

ment. Volume was also subdued with most investors taking a wait-and-

see attitude. In this regard, the US$12 price level proved to be a strong

support for the share in the market, as prices throughout the period

bounced back each time the market got close to that level. This comes as

the market recognizes the strong fundamentals of the Company, which is

expected to weather this temporary period of instability in the region.

Share A fluctuated between a low of US$12.54 and a high of US$14.10,

closing the quarter at US$12.61, a 4.25% decrease from the previous

quarter. Share B traded between a low of US$12.51 and a high of

US$14.01, closing at US$12.54, a 3.61% decrease from the previous

quarter.

Trading activity decreased during the quarter, with around 1.6 million

shares of both classes trading in the local market. GDRs traded

on the London Stock Exchange closed at around US$12.60, a 4.83%

decrease from the previous quarter.

79,298

4

REAL ESTATEDEVELOPMENT

NORTH SOUKSConstruction works are in progress

in the Entertainment Complex, de-

signed by Valode et Pistre (France).

Conceived as a mega entertainment

destination, it comprises 14 cinemas

with two VIP halls served by large

lounge and concession areas.

At Allenby Street level, high-end

boutiques are previewed while the

L-shaped adjacent building will host

restaurants and cafés. Completion

is scheduled for beginning 2013.

The Department Store is under

design by Zaha Hadid Architects

(UK – Irak). Its completion is

scheduled for end of 2015.

DEVELOPMENT NEWSA total 393 projects representing close to 3 million sq m

BUA are in various stages of development.

STATUS PROJECTS BUA SQ M

Completed 271 1,367,429

Under restoration 6 12,543

Under construction 47 527,561

Awaiting permit 25 387,417

Under study 24 355,175

No activity 7 16,632

Awaiting submission 13 395,834

TOTAL 393 3,062,591

CONFERENCES & REPORTSFor the second consecutive year, Inves-

tor Relations hosted an Analyst Day on

July 12th, 2012 where a number of local,

regional, and international sell-side

analysts and brokers were invited to hear

from Solidere management an update

on the Company’s current operations,

new pipeline developments as well as an

overview of mid to long term strategies.

The presentation was followed by a Q&A

session and a tour of the BCC project site.

Citigroup published an updated equity

coverage on the Company and FFA

Private Bank issued a flash note

following the event.

Solidere welcomed at its premises

representatives from investment funds,

research houses a nd other financial

institutions during the quarter.

6

SHOPPING & LEISURE

CITY CENTERNEWCOMERS

Bhar

Cavalli Café

Collins Cocktail Bar

Ecco

Fauchon

Gate of Beirut

Givenchy

Jamil Khansa

Leanna

Lola B

Pannier Gourmet

Rakan

Urguay Cocktail Bar

Vick Vanlian

OPENING SOON

Antoine Karam house Linen

Art Stone Boutique

Bvlgari

LH

Nanokeratin System

Robert Abi Nader

Tufenkjian

6:05 AT DEPECHEMODE

Seascape Fall 2012, The Creative

Space, silent auction, August 23-30

BIEL

Makinat Lebanon, September 25-28

BEIRUT SOUKSNEWCOMERS

Zahar Kids

OPENING SOON

Bensimon

BRGR Co.

Daniel Hechter

Gap

MAZ

Selamlique

Servane Gaxotte

Zahar Lingerie

EVENTS

Harley Davidson, through July 8

Afkart, designers, July 11-15

8

POPE BENEDICT XVI’S VISIT

Lebanon was blessed by Pope

Benedict XVI’s visit with a peace

message for the region and a

special thought for Syria. His

Holiness celebrated mass on

Beirut Waterfront attended by a

large congregation, September 16.

« I PRAY IN PARTICULAR THAT

THE LORD WILL GRANT TO

THIS REGION OF THE MIDDLE

EAST SERVANTS OF PEACE

AND RECONCILIATION, SO

THAT ALL PEOPLE CAN LIVE

IN PEACE AND WITH DIGNITY »

POPE BENEDICT XVI

10

EXHIBITIONSBEIRUT EXHIBITION CENTER

Glasstress, Adriano Berenco,

from the 2011 Venice Biennale,

July 16 – September 2

Angelika von Schwedes, paintings,

September 7 – October 14

ZEITOUNEH SQUARE

Light at the end of the tunnel,

Nada Sehnaoui, installation,

September 12 – October 14

12

EXHIBITIONS

THE VENUE

Contemporary Art of Uruguay,

through July 8

AFAK 3, 18 young Lebanese artists,

curated by Razan Chatti, August 2-15

SOUK ARWAM/ AJAMI

Lebanon in 3D, Jean-Claude Bejjani,

showcasing the third largest 3D

billboard in the world, August 22 –

September 22

ALWANE

Spring-Summer in Lebanon,

through August 15

Summer-Fall in Lebanon,

through November 3

AIDA CHERFAN

Group show, through October 31

AYYAM

Melting Pot, July 4-31

Inner Self, Kais Salman,

September 20 – October 30

MARK HACHEM

The other resurrection, July 6-21

Modern Masters works on paper,

September 20 – October 6

MAQAM

Opening Act, Nayef Francis,

July 17-28

PIÈCE UNIQUE

Murs Porteurs, Maya Hage,

through July 14

VILLA ZEIN

Pakistani folk truck art exhibition and

workshop for adults, July 10-11, for

children, July 13

Lipanan, 36 Armenian and

Lebanese artists, curated

by Hamazkayin gallery,

September 11-16

BOOKSIGNINGS ANTOINE ID

An Unfinished Odyssey, Cecil

Hourani, Antoine S.A.L.

Jasmine and Fire, a bittersweet year in

Beirut, Salma Abdelnour, Broadway

A Lebanese Perspective : Houses and

other work by Simone Kosremelli, part

of the Master Architect Series, Sylvia

Shorto, Images Publishing

LIBRAIRIE EL BOURJ

Sous les branches du grenadier,

May Menassa, Encre d’Orient,

July 20

Jaddati la tasmaani, Fatmeh Sharaf

Eddine, September 5, Dar al Saqi

VIRGIN MEGASTORE

Revolt in Syria, Stephen Starr,

Columbia University Press, August 1

Shal al Yasmin, poems by Johayna

el Awam, Amaluna Publishing,

September 19

INTERNATIONALLeggere le fotografie. In dodici lezioni,

Gabriele Basilico, Rizzoli

Common Pavilions, photography

by Gabriele Basilico was featured in

an installation by Diener & Diener,

13th architecture biennale (Venice)

August 29 – November 25

CONFERENCES Solidere Angus Gavin was invited to:

Sustainable Development and Inclu-

sive Growth for MENA Cities at the

Crossroads, a World Bank conference

in Marseilles, September 17-18

AWARDSNabil Gholam Architects is a recipi-

ent of the 2012 Green Good Design

Award in the Green Urban Planning/

Landscape Architecture category.

Solidere consultants Polypod won

the 2012-2013 Arabian Properties

Award for Architecture Multiple

Residence, September 10.

BOOKS, ETC.

14

PERFORMING ARTS

BEIRUT HOLIDAYS

Man in the Mirror, August 19-22

Michel Fadel, August 23

Elissa, August 24

Sami Yusuf, August 25

BEIRUT WATERFRONT

Enrique Iglesias, July 4

Red Hot Chili Peppers, September 6

THE VENUE

Scheherazade in Baabda,

performed by women inmates,

directed by Zeina Daccache,

July 12-15

JAZZ FESTIVAL

Al-Madar with Toufic Farroukh

saxophone, September 27

Arturo Sandoval, September 28

Charlie Winston, September 29

16

COPYRIGHT © 2012 SOLIDERE

The Lebanese Company for the Development and

Reconstruction of Beirut Central District s.a.l.

PO Box 119493 Beirut

2012 7305 Lebanon

Tel 961 1 980650 - 980660

Fax 961 1 980661 - 980662

solidere@solidere.com.lb

www.solidere.com

PHOTOGRAPHERSMosbah Assi | Ahmad Azakir | Rayya Haddad

Fares Jammal | Mazen Jannoun | Rachelle Tabet

David Xavier |

VISITORS

OFFICIALS

New Spanish ambassadress Milagros

Hernando, Paraguay ambassador

Adela Jiménez de Pérez, City of

Paris department project manager

Mathilde Chaboche with architect

in chief Pascal Martin and general

inspector Laurence Pascalis, Henri

Castores new head of Economic

Section at the French Embassy,

Institut Français des Relations

Internationales (IFRI) president

Thierry de Montbrial with Riad

Tabet.

BUSINESS DELEGATIONS

Karl Storz Endoscope international

chief consultant Markus Simmen,

East Mediterranean and Gulf

managing director Mohammad

Ali Jaber, marketing director Maher

el Hassan and marketing manager

Wassim Mohsen (Germany),

Società Italiana per condotte

d’acqua international operations

director Ernesto Guerrieri and

Vincenzo Speziali with Antoine

Habib (Italy), Siyah Group general

manager Adel Nadidh with

managing director Adnan Nahidh

(Irak), Faruk Group Holding CEO

Hawre Daro Noori with board

member Zarya Faruk Mustafa

and business development director

Qais Al Maskati (Kurdistan),

Networkers engineering CEO

Antoine Eddé (Switzerland), Candu

senior piping analyst Fouad Camille

Edde (Canada); Fourteen local,

regional and international financial

analysts, Rotary Club members.

PROFESSIONALS & ACADEMICS

UNDP research analyst Kassem

Diab, University of California Irvine

professor of Civil and Enviromental

Engineering Ayman Mosallam,

Cambridge University researcher

Jessica Holland, Columbia University

urban planning student Austin

Mkattaf (US), Bödeker Partners

landscape architect Eduard Gevers,

architect Jan Kendel (Germany),

architect engineer Alessio Paoletti

(Italy), three Jordanian architects.

MEDIA

Two journalists Stan Strasburger and

Rainer Merkel (Poland – Germany).

Left to right

AR Solh with ambassadors Jiménez

de Pérez and Milagros Hernando