Deyaar posts small Q2 profit rise

Property developer Deyaar on Wednesday reported a marginal increase in quarterly net profit as it slashed costs to offset a sharp drop in revenues.

Deyaar, the emirate's second largest developer by market value, made a net profit of Dh18.6 million ($5 million) for the quarter, compared with Dh18.1 million made during the same period in 2011, it said in a statement on the Dubai bourse.

However, revenue for the quarter more than halved to Dh143.3 million from Dh334.3 million in the prior-year period.

The company reduced direct costs in the quarter to Dh82.9 million from Dh328 million.

Deyaar continues to reel under the impact of the global financial crisis. The company plans to focus on completing existing real estate projects.

The developer said it delivered two projects in the second quarter and will hand over two more projects during this year.

Property firms in the emirate have fared better in the second quarter this year with Emaar Properties and Union Properties reporting an increase in profits.

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