Deyaar announces record 2008 net profit of Dhs1.104bn, up 105%

For the 12-month period ending December 31, 2008, Deyaar reported net profits of Dhs1.104bn, an increase of 105% compared to Dhs540m achieved in the previous year. During the same period, the company's revenues reached a record Dhs2.973bn, a substantial increase of 136% compared to revenues of Dhs1.259bn the previous year.

Deyaar also announced today its financial results for the fourth quarter of 2008, including net profits of Dhs343m for the three months ending December 31, 2008, up 59% compared to Dhs216m during the same period in 2007. The company's revenues for the fourth quarter of 2008 reached Dhs676m, up 10% compared to Dhs617m during the corresponding period in 2007. The fourth quarter numbers are inclusive of the portfolio revaluation and adjustments made in line with current market conditions.

Commenting on these results, H.E. Nasser Bin Hassan Al-Shaikh, Director-General of the Dubai Department of Finance and Chairman of Deyaar, said:

"Today's announcement reaffirms Deyaar's extremely strong fundamentals and sound growth strategy. Despite challenges facing the global financial markets and the real estate sector worldwide, Deyaar has continued to demonstrate consistent growth by focusing on its core competencies and managing its resources in line with changing market requirements."

"A total of nine projects were launched last year by the company, all of which received an exceptional response from investors and homebuyers. This is testament to the high level of trust and confidence in Deyaar properties, as we continue meet and exceed the expectations of our clients. Deyaar remains well positioned to consolidate its current growth and capitalise on emerging opportunities both in the region and worldwide."

Markus Giebel, Chief Executive Officer of Deyaar, said: "Our net profit more than doubled in 2008 and grew by 10% in the fourth quarter of 2008 over our net profit in the third quarter of 2008 despite growth challenges to the real estate sector at large. We have witnessed consistent balance sheet performance throughout the year, and our stability is clearly reflected in the company's stellar financial performance and admirable debt-to-equity ratio. With a view to strengthen the company's capital position even further, we have decreased our debt-to-equity ratio to eight%, enabling Deyaar to have one of the lowest debt ratios in the market. We continue to remain well capitalised and have carefully reviewed the market to align our resources in line with areas where we see optimum potential and maximisation of shareholder value in 2009.

"Deyaar is already working with a strategy of product diversification, focusing on underserved markets, alongside its high-end projects. The move to develop larger, mixed-use communities has clearly succeeded as we continue to see increasing interest from investors and end-users alike. In 2009, we will maintain our focus on building communities in line with current market needs, leasing and asset management, and fund management, while also expanding our reach to enter emerging high-growth markets in the region and beyond. We feel strongly that there is a need for middle-income housing, and we will strive to accommodate this market need as the company moves forward with its 2009 growth strategy."

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 both the company's pre- and post-incorporation activities.