Deyaar Records Dh54m Profit in First Quarter Despite Tough Conditions

Deyaar Development PJSC made a profit of Dh54.48 million for the first quarter of the year, a 73 per cent fall year on year, a company statement said on Sunday. The company currently has a positive cash flow of Dh1 billion, according to its chief executive Markus Giebel, that will be utilized for further expansion in the region. While the company has made "substantial profits", the fact that it is in good financial health amid the current slump is the most important factor, he said. The results are in line with the company's earlier expectations and current budgetary priorities, the statement said. Its gross revenues reached Dh470 million, while its total shareholders' equity is Dh7.34 billion. The company's assets total Dh11.38 billion.

Giebel earlier revealed to Gulf News that its outstanding advances to contractors are Dh80 million, and its advance payments total Dh220 million. He said that the outstanding payments were only a result of on-going negotiations. The company's stock price yesterday closed at Dh0.69, unchanged from the previous session on the Dubai Financial Market, even though it saw the highest trading on the market. Later this year the developer will deliver seven projects, bringing to the market almost 4 million square feet of units. The first of these is the Madison Residency in the Technology, E-Commerce and Media (Tecom) free zone, and will be handed over to customers next month.

Safeguarding the interests of our customers and preserving our strong capital position remain at the heart of our business strategy, and we remain fully committed to those goals," Giebel said in a statement. Up to 30 per cent price reductions on specific projects are being given by the developer, as well as the option for investors in cancelled projects to choose property in another development along with 10 per cent cash back, as part of the company's project consolidation strategy. The developer has signed up with four banks, including RAKbank and Dubai Islamic Bank, to help its investors with mortgage support.