By Andy Sambidge
But CEO still upbeat as profit levels improve on Q1, pledge on project delivery.
Deyaar Development on Sunday announced that its net profit for the second quarter of 2009 was AED75.4 m ($20.5m), a 38 percent rise over Q1, but a 69 percent drop on the same period of 2008.Deyaar’s gross revenues for Q2 stood at AED402m while total assets reached AED11.3bn, the company said in a statement.
While the global financial crisis continued to impact the company’s financial performance during the period, Deyaar said it remained on course 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, the statement added.
By the end of the year, the company expects to have delivered nearly 4 million square feet of units for 2009.
Dubai’s property market was hurt more than others by the global financial crisis. Home prices have tumbled by about 50 percent from their peak and may drop a further 20 percent this year, Deutsche Bank AG said last month.
The collapse followed a construction boom that created thousands of homes just as demand began to evaporate because of the worldwide economic recession.
Markus Giebel, CEO of Deyaar, said: “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...We remain on course to achieve our target of delivering seven projects in 2009.”
With no sales, how are they accounting profits?
Good comment by CanAm...answer is profits gained from the interest gained on investors money for their delayed projects and their famous deyaar park, jebel ali which has been "on-hold" since the past two years...! Hilarious yet sad how investors have to remain silent !