Deyaar reports 54% drop in third quarter net profit as revenue declines
Net profit for the three-month period fell to Dh16.3 million
Dubai-listed Deyaar Development reported a 54 per cent decline in third-quarter net profit as revenues decreased and expenses climbed.
Net profit for the three-month period ending September 30 dropped to Dh16.3 million, the company said on Thursday, in a statement to the Dubai Financial Market, where its shares trade. Revenue plunged 4.1 per cent at the end of the third quarter to Dh145.7m from the same period a year earlier, while expenses increased to Dh43.6m.
“This year has seen Deyaar’s hospitality portfolio well and truly established, with the opening of the Millennium Atria Business Bay and Millennium Al Barsha. These two premium projects will deliver future recurring income,” said Saeed Al Qatami, chief executive of Deyaar.
The Afnan District, part of its integrated urban community, Midtown, is completed, he said. “It will mark a momentous occasion as we prepare to welcome residents into this outstanding family-friendly development," he said.
Construction companies in the UAE, one of the top project markets in the GCC, have faced headwinds as the property market slowed after a three-year oil price drop that began in 2014. Concerns about an oversupply of residential and commercial units added to the softness but analysts are forecasting a recovery on the back of a new immigration regime offering long-term visas for investors, the Dh50 billion Ghadan 21 stimulus, Expo 2020 and changes to the freehold property law.
A new real estate committee recently set up in Dubai is also expected to provide a better supply balance in the emirate through greater collaboration between government-related entities and private sector companies.
During the nine-month period ending September 30, Deyaar reported a net profit of Dh53m, a 47.4 per cent drop over the same period last year. However, revenue was up 3.6 per cent to Dh483.3m during the first nine months of the year.
Deyaar’s total liabilities at the end of the nine months stood at Dh1.8 billion and assets were at Dh6.3bn, according to the statement.
The company also said the completion of the second of Midtown’s six districts, Dania, which will feature 579 apartments, is expected by the end of the year. The Afnan District has a total of 659 apartments across seven buildings, ranging from studios to three-bedroom units — all of which are sold out.
Updated: October 17, 2019 01:55 PM