UAE: Deyaar reports 85% rise in nine-month profits
Property revenues in Deyaar’s flagship projects remained at $47.6m (AED175m) for the nine-month period ending 30 September, 2016
Dubai-listed developer Deyaar Development reported a year-on-year increase in revenues for the first nine months of 2016, to $71m (AED261m), an 85% rise when compared to $38m (AED141m) in 2015.
Owing to this, the company recorded a healthy net profit of $45.7m (AED168m).
Property revenues in Deyaar’s flagship projects remained at $47.6m (AED175m) for the nine-month period ending 30 September, 2016, while expenses decreased to $31m (AED114m) in 2016 from $36m (AED132m) in 2015.
Saeed Al Qatami, CEO of Deyaar, said in the bourse statement: “Deyaar has continued to perform strongly in 2016 with significant increases in revenues and a strong and healthy net profit. This confirms that our long-term strategy is adaptable to Dubai’s evolving real estate environment and that customers continue to trust Deyaar’s differentiated propositions.
“Over the course of the year, we have made significant progress on our flagship developments. Deyaar’s diversified portfolio which includes project development, property management, facilities management and owners’ association management is growing, while our differentiated offerings, appealing to both mid-market and luxury customers, continues to advance Deyaar’s status as a leader in the sector.”
In August 2016, Deyaar announced that work is underway on its latest project, a hotel and serviced apartment complex situated close to the Mall of Emirates in Al Barsha area. The development will tap into the increasing demand for hotel and serviced apartment accommodation and comprises 408 units, including 299 hotel rooms and 109 serviced apartments. With a total plot size of 6,577m2, the property is expected to be completed by the first quarter of 2018.
The company announced a deal with global hotel group Millennium & Copthorne in September 2016. The strategic alliance spans three of Deyaar’s current developments, further expanding its exposure to the hospitality sector. The combined scale of the developments is 953 hospitality units, including one-, two-, and three-bedroom serviced apartments, and four-star hotel rooms. All three are scheduled for completion by late 2017 to early 2018.