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Deyaar Profit Soars 59 Per Cent

DUBAI - Bucking the property slump, Deyaar Development said on Sunday its fourth-quarter net profit jumped 59 per cent from a year ago to Dh343 million driven by strong revenue.

In a disclosure to the Dubai bourse, Deyaar said its fourth quarter numbers are inclusive of the portfolio revaluation and adjustments made in line with current market conditions.

Deyaar’s fourth quarter revenue stood at Dh676 million, 10 per cent higher compared to the same period in 2007.

The company’s full-year net earnings was a record Dh1.104 billion, a hefty 105 per cent increase from a year earlier with revenue soaring 136 per cent to Dh2.973 billion.

With a debt-to-equity ratio reduced to 8 per cent, the company said it was “well positioned” to capitalise on growth opportunities this year.

“Today’s (Sunday’s) announcement reaffirms Deyaar’s extremely strong fundamentals and sound growth strategy,” said Nasser Bin Al Shaikh, director general of the Dubai Department of Finance and concurrent chairman of Deyaar.

Al-Shaikh said the company will consolidate its current growth and take advantage of “emerging opportunities both here and abroad.”

Despite major challenges besetting the Dubai property sector, Deyaar managed to post positive results, said its CEO Markus Giebel.

“We have witnessed consistent balance sheet performance throughout the year, and our stability is reflected in the company’s stellar financial performance and admirable debt-to-equity ratio.”

Major property companies in the Middle East, especially those in Dubai are bracing for what may turn out to be a more severe downturn in the sector, hit hard by the global financial crisis as liquidity dried up.

Giebel said Deyaar will continue to pursue projects where it sees “optimum potential and maximisation of shareholder value” in 2009.

This would include middle-income or more affordable housing where the demand is still high, said Giebel.

· rocel@khaleejtimes.com