Q1 profit declines at Dubai developer Deyaar as board reshuffled
DFM-listed real estate giant remains positive about 2019 as Millennium Al Barsha hotel readies to open in 'next few months'
Dubai Financial Market-listed (DFM) Deyaar Development – the firm behind the city's Millennium Al Barsha, Midtown, and Millennium Atria Business Bay projects, among others – has seen net profits halve for Q1 2019, opting also to reshuffle its senior board ranks at the same time.
Net profits for the three months ending 31 March stood at $5m (AED18.3m) – a 54% drop on Q1 2018’s corresponding figure of $10.9m (AED40m).
Revenues remained largely flat at $47.9m (AED175.8m), a minor fall on the $48m (AED176.5m) in cash brought in during the first quarter of 2018.
Deyaar’s board of directors has, according to a separate DFM missive, appointed Abdullah Ali Obaid Al Hamli as board chairman and Abdullah Ibrahim Lootah as vice chairman during a board meeting on 1 May.
“With several planned project launches and handovers in the coming year, we are looking forward to a strong 2019,” said Saeed Al Qatami, chief executive officer of Deyaar, speaking on the results.
“We will shortly be adding a second hospitality project to our portfolio when the Millennium Al Barsha launches in the next few months.”
Q1 2019 saw Deyaar launch Millennium Atria Business Bay, the group’s first hospitality project with Millennium Hotels and Resorts (Mena).
Construction on the Afnan and Dania districts of the developer’s flagship Midtown development is ongoing, with the projects almost 80% complete. The developer said sales in both districts have exceeded 90%, with handover expected this year.
The firm’s vice president for project and commercial, Eng Khalid Ababneh told Construction Weeek during a site tour last month that the development has been something of a “challenge” for the company.