Deyaar reports second quarter net profit of Dhs75.40m

Deyaar's net profit for the three months ending June 30, 2009, reached Dhs75.40m, in line with the company's earlier forecasts and resource allocation strategy for 2009.

This represents an increase of 38 per cent over the company's net profit of Dhs54.48m for Q1 2009.

Deyaar's gross revenues for Q2 2009 stood at Dhs402m. Deyaar's total shareholders' equity stood at Dhs7.4bn, while total assets reached Dhs11.3bn.

The company also reported today that it continues to maintain a positive operational cash flow with sufficient liquidity for the future. In a clear indication of Deyaar's financial strength, the company noted that it has committed Dhs100m towards the Deyaar Property Opportunity Fund as seed capital as of June 30, 2009.

While the global financial crisis continued to impact the company's financial performance during the period, Deyaar performed strongly to move forward with its 2009 business strategy, which has been favourably received by all customers and investors.

In line with its commitment to deliver seven projects in 2009, the company delivered five projects in the second quarter of this year, including four residential projects in Dubai Silicon Oasis and Deyaar's first project in Lebanon. By the end of the year, the company expects to have delivered nearly 4 million square feet of units for 2009. In July, Deyaar will hand over The Citadel, its premium commercial tower in Dubai's Business Bay. The Citadel is one of the first projects to be delivered in Business Bay, where Deyaar is one of the largest developers.

"On behalf of Deyaar, I am very pleased to note that our financial results for the second quarter have been in line with our expectations and are reflective of our sound fundamentals," said Markus Giebel, Chief Executive Officer of Deyaar.

"Deyaar's strong balance sheet performance in the first half of 2009 is a validation of our business strategy that has positioned us better to navigate through a challenging market. As a result of our unique approach, we remain on course to achieve our target of delivering seven projects in 2009. We look forward to continue delivering high value and best service to our customers and shareholders."