Deyaar announces second quarter net profit of Dhs247m

Deyaar's net profit for the second quarter of 2008 reached Dhs246.9m, an increase of 22%compared to Dhs202m in the first quarter of 2008, and up 184% compared to Dhs87m in the second quarter of 2007. The company's net profit in the first half of 2008 stood at Dhs448.9m, an increase of 266% compared to Dhs122.8m in the first half of 2007.

H.E. Nasser Bin Hassan Al-Shaikh, Chairman of Deyaar, commented on the successful results:

"As today's announcement demonstrates, Deyaar continues to solidify its position as UAE's preferred and leading real estate developer. These very positive second quarter results validate the company's strategic focus and make clear its strong execution capabilities. As well, Deyaar continued to add shareholder value through the rapid sale of key projects across various master developments, tightly managing its construction activities and further expanding its international footprint."

Deyaar's revenues in the second quarter of 2008 reached Dhs823m, an increase of 79% compared to Dhs460m in the first quarter of 2008, and up 235% compared to Dhs245m in the second quarter of 2007. The company's revenues in the first half of 2008 reached Dhs1.283bn, an increase of 218% compared to Dhs403m in the first half of 2007.

Al-Shaikh added, "Deyaar's strategic move to develop larger, multi-tower, mixed-use developments is providing the company with the required scale to maintain its growth trajectory in the longer term. Over the past two years, Deyaar has proved to be a true success story, building a solid reputation for delivering high-quality products in a timely manner. This is reflected in the strong customer response to our projects in both the primary and secondary markets. We are pleased that our developments are in great demand, and continue to be fully sold out on the first day of sales."

At the end of the second quarter of 2008, Deyaar's total assets reached Dhs9.78bn, an increase of 7% compared to Dhs9.15bn at the end of the first quarter of 2008, and up 108% compared to Dhs4.69bn at the end of the second quarter of 2007.

Al-Shaikh further commented, "Deyaar is on track to deliver the majority of its projects currently under development by 2010. On the international level, Deyaar will continue to establish local partnerships with capable and experienced partners to facilitate successful market entry. Our strategy is to extend Deyaar's geographic diversification beyond Lebanon and Turkey to cover other markets, including Saudi Arabia, Qatar, Kazakhstan, Egypt, Jordan and India."

Deyaar's expansion will be driven primarily by its fast-growing property development activities in the UAE and across its secondary markets.

Following its extremely successful initial public offering in May 2007, which was oversubscribed 14 times, Deyaar Development PJSC was incorporated on July 10, 2007. All of the figures announced by Deyaar today reflect the company's post-incorporation activities.