Deyaar reports 25% rise in first quarter net income as revenues climb

Developer says its board last week discussed company's capital position and structure

A model of the Mont Rose development, which Deyaar expects to complete this year. Company said on Saturday its net income rose 25 per cent in the first quarter as revenues climbed. Antonie Robertson /Show more

Deyaar Development on Saturday reported a 25 per cent surge in its first quarter net income as revenues climbed for the Dubai-listed real estate company on the back of project deliveries.

Net income for the three months to the end of March advanced to Dh40 million, from Dh32m reported for the year-earlier period, the company said in a statement.  Revenues also recorded a 25 per cent year-on-year jump, to more than Dh176m, up from Dh142m reported for the first three months of 2017, it said.

The company’s “steady performance in the first quarter” is reflected in higher revenues and a rise in profitability, Saeed Al Qatami, the chief executive of Deyaar, said. “During the first three months of 2018, Deyaar has made major headway in its iconic projects,” he noted.

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Developers have struggled to maintain profitability in recent years as softer market conditions, an economic slowdown and a supply glut pushed the rental and sales values of properties lower. The market is expected to stabilise this year and likely recover in 2019 as major infrastructure projects near completion, Dubai Land Department said on Saturday. Dubai recorded Dh58bn worth of sales transaction during the first quarter of 2018, the DLD said, without giving a comparative figure for the first quarter of 2017.

Deyaar, which is majority owned by the emirate’s top Sharia-complaint lender Dubai Islamic Bank, said its board last week also discussed its capital position and structure, and requested the management to carry out the required studies and present them to the board for discussion in the next meeting. It did not provide further details regarding the capital requirements or structures in the bourse filing.

The company, which has recently handed over the Mont Rose project,  is making progress on The Atria, Midtown, and Millennium Deyaar Hotel & Apartments in Al Barsha area. It expects to deliver The Atria in the second quarter of 2018, it said.