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Wed 17 Feb 2010 03:21 AM

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Deyaar reports $8.17m profit in 2009

Real estate company is in 'prime position' to benefit from global recovery according to CEO.

Deyaar Development PJSC announced its financial results for the year ending December 31 2009, on Tuesday.

Despite challenging global conditions, the regional real estate company was able to reduce its level of positioning related to receivables, which lead to continuously positive operational cash flow.

During the period covered, Deyaar continued to focus on its unique consolidation strategy, which allowed it to register a reduced level of defaults and a higher paid up value for each of the company’s sold and consolidated units.

The company’s gross revenues for the 12 months stood at $500.2 million, a 33 percent increase compared to the $376.7 million earned in 2008.

The reported gross revenues for company in 2008 were $805.8 million.

Deyaar reported a net profit of $8.17 million in 2009, a 95 percent decline compared to the $178.4 million reported in 2008.

Markus Giebel, chief executive officer, Deyaar, said: “In the face of unprecedented threats to the stability of the global financial system, the worldwide real estate sector witnessed a range of significant challenges in 2009.

Despite such volatile conditions, Deyaar successfully handed over eight projects last year, including a $98.9 million project in Lebanon”

In 2010, Giebel said the Dubai based real estate developer would continue to focus on the completion of the consolidation of its projects and timely collections of its receivables in the UAE.

In addition, the company would continue to identify strategic expansion opportunities overseas, including regions such as Lebanon and Saudi Arabia.

He said: “With six projects slated for handover this year and the ongoing completion of income generating assets, in parallel to the continued stabilisation of regional and international markets, we look forward to reporting continuous stable cash flows in 2010.”

Giebel added that Deyaar’s sound fundamentals and prudent operational strategy placed the company in prime position to benefit from the global recovery.