Deyaar Development has reported a net profit of Dh26 million in the first quarter of 2011 compared to a netloss of Dh 100 million for the same period last year, citing increase in impairment provisions.
Gross revenues reached Dh85 million, while total shareholders’ equity stood at Dh 4.4 billion. Total assets were at Dh8 billion.
Saeed Al Qatami, Chief Executive Officer of Deyaar, said: “The net profit for the first quarter of Dh26 million reported is a combination of profits recognised on a very small proportion of unit properties actually handed over to individual customers out of the five projects completed during the quarter as well as the result of prudent approach adopted during 2010, in the form of enhanced impairment provisions.”
The company expects majority of profits from the projects completed during the first quarter are expected to be recognized during the following quarters.
Deyaar further stated it was “well placed to take advantage during this present period of expected increased stability in the UAE property sector, in line with more positive macroeconomic conditions and deliver profits regularly.”
It plans to deliver another two projects over the course of this year. In April, Emirates 24/7 reported that Deyaar has commenced handover for 595 apartments in its three residential projects in Business Bay and will be offering financing options to its customers to help reduce the default rate. The three towers are: Mayfair Tower (218 units), Mayfair Residency (213 units) and Clayton Residency (164 units).
Deyaar share on the Dubai Financial Market 3.39 per cent higher at Dh0.305 on Wednesday.