Deyaar posts third quarter net profit of Dhs81.6m, up 8% from second quarter

The company recorded a net profit of Dhs81.6m for the period, an increase of 8% compared to Dhs75.3m in the second quarter of 2009.

Revenues for the third quarter of this year stood at Dhs450.3m, an increase of 12% compared to Dhs402.1m posted in the second quarter of 2009. Deyaar's total shareholders' equity stood at Dhs7.5bn, while total assets reached Dhs11bn.

The results are in line with company forecasts and its strategy to diversify income streams by fortifying recurring revenue sources. While global economic challenges continue to impact overall revenues, Deyaar continued to be profitable through the first nine months of the year, maintaining a positive operational cash flow.

Key milestones in the quarter include fulfilling the company pledge to deliver seven projects in 2009 and the company's announcement to double the size of its property management division over the next five years. In September, Deyaar handed over The Citadel, its premium Dhs700m, 41-storey commercial tower located in the Business Bay master development. The Citadel was the seventh project to be handed over by Deyaar this year and one of the first projects to be delivered in Business Bay, where Deyaar is one of the largest developers.

"Deyaar's ability to achieve quarter-on-quarter earnings progression despite the challenging economic conditions facing businesses worldwide is testament to the company's sound fundamentals and prudent operational strategy,"

said Markus Giebel, Chief Executive Officer of Deyaar. "Our strong balance sheet performance in the first nine months of 2009 has put us in a position to capitalise on our financial strength by investing in long-term income-generating sources. The launch of the Deyaar Property Opportunity Fund is an important step in this direction, and we remain on course to close this fund before the end of the year.

"We have committed ourselves to hand over six projects in 2010, while expanding the size of our property management portfolio and reinforcing our presence outside the UAE," Giebel added. "I am confident that with the knowledge, insight and continued hard work of our people, we will continue to be profitable for the rest of the year while maintaining the same high level of customer service and shareholder value."