Deyaar reports 73% decline in Q1 net profit

STANDING TALL: plans to hand over seven projects this year. (ITP Images)

Real estate company Deyaar Development PJSC posted a net profit of AED54.48m ($14.9m) for the first three months ended Mar 31 2009. Its net profit declined by 73% as it had earned AED201.52m ($54.86m) in the first quarter of 2008.

The real estate company posted Q1 revenues of AED470m ($128m), according to a media release on the Zawya website. The results are in line with the company forecasts and budget, the company said.

Deyaar reported positive operational cash flow and its outstanding advances to contractors were AED279m ($76m). The company plans to hand over seven projects this year, newswire Zawya informed.

During the same period, Deyaar's total shareholders' equity stood at AED 7.34bn ($2bn), while total assets reached AED 11.38bn ($3.10bn).

While the repercussions of the global financial crisis impacted the company's financial performance during the period, Deyaar Development Company continues to move forward with its 2009 strategy, the company said in a media release.

Reinforcing its commitment to its customers, the company will deliver seven projects in the UAE this year, comprising nearly four million square feet of units. The first of those projects to be completed, Madison Residency in the Technology, E-Commerce and Media (TECOM) free zone, will be handed over to customers next month, it said.

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

"Safeguarding the interests of our customers and preserving our strong capital position remain at the heart of our business strategy, and we remain fully committed to those goals. We look forward to delivering a range of projects over the course of this year."

The real estate developer, which manages 16,000 commercial and residential properties worldwide.

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READERS' COMMENTS

Now next What..?? Vegetables?
Posted by Kaptain, Abu Dhabi, UAE on Sunday 26 April 2009 at 20:41 UAE time


So what are the property giants thinking next..?? Sell vegetables? Or magazines..?? They inflated the prices for their own good. Now how do they recover? Do they have any recovery plans..??

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