<a href="gopher://topicL3RoZW5hdGlvbmFsL09yZ2FuaXNhdGlvbnMvQ29tcGFuaWVzL1VBRSBjb21wYW5pZXMvU29yb3Vo" inlink="topic::L3RoZW5hdGlvbmFsL09yZ2FuaXNhdGlvbnMvQ29tcGFuaWVzL1VBRSBjb21wYW5pZXMvU29yb3Vo">Sorouh</a> Real Estate, Abu Dhabi's second largest developer, posted a five per cent rise in revenue in the first quarter, aided by the sale of two penthouses on Reem Island. The property company announced revenue of Dh452 million for the first quarter, compared to Dh430m for the first quarter of 2010. Net profit fell 42 per cent, from Dh131.6m in the first quarter of 2010 to Dh76.3m, as construction costs weighed on the company's bottom line. Last Updated: Apr 27, 2010 <strong>Qatar still scoring on world cup victory</strong> Despite an oversupply of new projects the market is stabilising, thanks to increasing demand, according to a new report by DTZ. <a href="http://www.thenational.ae/national-blog/crane-country?articleID=1596">Read blog</a> The company attributed a drop in gross profit margins to a change in the "revenue mix." Earnings per share dropped to .02 fils per share from .05 fils in the same period of 2010. The company's revenue for the quarter was aided by the start of handover of commercial space in the Sun and Sky Towers on Reem Island, which resulted in Dh100m in cash flow. Handover of residential units in the development will start on May 3. Sales of two commercial units and two residential penthouses in the Shams complex on Reem added Dh40m to the company's cash flow. Sales of villas in Golf Garden, construction revenue from national housing projects and investment revenue also bumped revenue, the company said. The company says it has Dh1 billion in cash and access to another Dh1bn from a loan facility. "The business is in strong financial health and is well funded to continue to deliver an exciting project pipeline into the market to meet the growing demand for quality units," Sorouh managing director Abubaker Seddiq Al Khouri said in a statement.