Dubai-based real estate company Deyaar Development posted 40 per cent drop in the first nine months of the this year as the company wrote-back provision for impairment of investment in an associate and recorded fair valuation gain on investment properties for the corresponding period of last year.
The nine-month 2017 net income profit plunged to Dh100 million from Dh167m in a year-earlier period, Deyaar said in a statement.
"Net profit for the same period (nine months) in 2016 included a write-back of provision for impairment of investment in an associate and fair valuation gain on investment properties," said the developer.
The company which only provided the nine-month financial details also recorded a 41 per cent drop in the net income for the three-month period ended September 30. The third-quarter 2017 profit declined to Dh33m compared with Dh55.6m in a year-earlier period, according to The National calculations of previous income statements.
Revenue during the first nine months of the year, however, nearly doubled to Dh512m from Dh261m for the same period in 2016 thanks to “robust” sales of The Atria and Mont Rose projects, both of which currently exceed 80 per cent completion. Midtown is on track to be finished by the third quarter of 2019, the company said.
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“Over the past nine months of 2017, Deyaar has made major headway in three of our flagship projects while focusing on expansions within the hospitality segment to further grow our portfolio,” said Saeed Al Qatami, chief executive of Deyaar. “With the significant progress on our developments, Deyaar is witnessing a new cycle of growth that aligns perfectly with our long-term strategic plan driven by UAE Vision 2021.”
In April, Deyaar awarded Belhasa Engineering and Contracting Company a Dh600m contract for its Midtown Afnan and Dania districts.
Deyaar expects its second half revenues and profit to improve "slightly" from the first six months of 2017, as the firm continues to focus on generating income from its operations, Mr Al Qatami said in September.