Handovers, lower provisions helped developer to AED26m quarterly profit
Deyaar, Dubai's second-largest property developer by market value, returned to profits in the first-quarter, as it handed over new units and reduced provisions.
Deyaar made a first-quarter profit of AED26m ($7.08m) compared with a loss of AED100m during the same period in 2010, the company said in a statement.
Deyaar's gross revenues reached AED85m and its shareholder equity is AED4.4bn.
Its total assets are worth AED8bn, it said.
The developer delivered five projects in the UAE in the first quarter and said it would deliver another two this year.
The return to profit was down to a combination of profits being recognised on units handed over to customers and reduced provisions, the company's chief executive said.
"The majority of profits from the projects completed during the first quarter are expected to be recognised during the following quarters," said Saeed Al Qatami.
Deyaar made a huge 2010 loss of 2.3 billion dirhams in 2010 on writedown of assets and impairments.
Dubai's property sector was hit hard by a property downturn, with billions of dollars worth of projects put on hold or cancelled, while property prices slumped as much as 60 percent.