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Sun 4 Aug 2013 11:49 AM

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Dubai developer Deyaar Q2 net profit rises 47 pct

Gained from lower costs and fair-value adjustments of prices for its investment properties

Dubai developer Deyaar Q2 net profit rises 47 pct

Dubai property developer Deyaar on Sunday reported a 47 percent rise in second-quarter net profit as it gained from lower costs and fair-value adjustments of prices for its investment properties.

Deyaar, one of the companies worst hit by Dubai's real estate market collapse in 2009-2010, posted a consolidated net profit of AED27.3m ($7.4m) compared with AED18.6m in the corresponding period of 2012.

One analyst at SICO Bahrain had forecast a second-quarter profit of AED6m.

Revenue for the quarter dropped to AED93.6m from AED143.5m in the prior-year period.

The developer made a gain of AED36.6m in the quarter from fair-value adjustments for its investment properties. Direct costs for the quarter fell to AED2.2m from AED82.9m.

Property firms in Dubai began recovering last year after prices dropped by over 50 percent over several years from their peak in 2008. In July, Dubai's largest developer Emaar Properties reported a 10 percent rise in second-quarter net profit.

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