Dubai: Deyaar reports dip in its third-quarter profits
Dubai-based developer, Deyaar Development, reported a net profit of AED100mn in the third quarter of 2017 as compared to AED167mn in the same period last year.
The company reported revenues of AED512mn for the first nine months of the year as compared to AED261mn in the same period in 2016, representing a 96% year-on-year rise in revenue. The increase is attributable to robust sales and acceleration of progress in the construction of Deyaars flagship projects, including The Atria and Mont Rose, both of which currently exceed 80% completion. Midtown is on track to be completed by Q3 2019.
Deyaar recorded gross profit of AED182mn [As of Q3 2016: AED105mn], according to its statement on Dubai Financial Market (DFM). Net profit for the same period in 2016 included a write-back of provision for impairment of investment in an associate and fair valuation gain on investment properties.
Saeed Al Qatami, CEO of Deyaar, said: Over the past nine months of 2017, Deyaar has made major headway in three of our flagship projects while focusing on expansions within the hospitality segment to further grow our portfolio. With the significant progress on our developments, Deyaar is witnessing a new cycle of growth that aligns perfectly with our long-term strategic plan driven by UAE Vision 2021.
In April, the company appointed Belhasa Engineering and Contracting Company as the main contractor for its Midtown Afnan and Dania districts in a contract worth AED600mn.