Salhiah Real Estate -Equity Report -03-06-2012

12 – Month Fair Value: KWD 0.300
Recommendation: Accumulate – Risk Level: 3
Last Close (30 May 2012): KWD 0.265

Revenues of KWD 11.34 million were 3% below our estimate of KWD 11.7 million. The segmental breakdown show the shortfall came almost entirely from hotel operations, which reported revenues of KWD 3.35 million, as against our estimate of KWD 3.6 million. Real estate operations reported revenues of KWD 4.22 million, in line with our estimate of KWD 4.25 million, whilst care homes reported revenues of KWD 3.76 million, in line with our estimate.

Sahlia’s share price has rallied strongly since our last analyst comment, and there is now a 13% upside to our Fair Value. We therefore downgrade our Recommendation from “Buy” to “Accumulate”.