Deyaar swings to Q1 profits
Dubai, May 12, 2011
Deyaar, Dubai's second-largest property developer by market value, returned to profits in the first-quarter, as it handed over new units and reduced provisions.
Deyaar made a first-quarter profit of Dh26 million ($7.08 million) compared with a loss of Dh100 million during the same period in 2010, the company said in a statement on Wednesday.
Deyaar's gross revenues reached Dh85 million and its shareholder equity is Dh4.4 billion. Its total assets are worth Dh8 billion, it said.
The developer delivered five projects in the UAE in the first quarter and said it would deliver another two this year.
The return to profit was down to a combination of profits being recognised on units handed over to customers and reduced provisions, the company's chief executive said.
'The majority of profits from the projects completed during the first quarter are expected to be recognised during the following quarters,' said Saeed Al Qatami.
Deyaar made a huge 2010 loss of Dh2.3 billion in 2010 on writedown of assets and impairments.
Dubai's property sector was hit hard by a property downturn, with billions of dollars worth of projects put on hold or cancelled, while property prices slumped as much as 60 per cent.
Deyaar's shares ended 3.4 per cent higher on the Dubai bourse, prior to the announcement.-Reuters