By Arif Sharif
Jan. 25 (Bloomberg) -- Deyaar Development PJSC, the real- estate company part-owned by Dubai Islamic Bank PJSC, said fourth-quarter profit jumped 59 percent as sales of homes and offices increased and on revaluation gains.
Net income in the three months to December rose to 343 million dirhams ($93 million) from 216 million dirhams a year earlier, the Dubai-based company said in a statement posted on the Dubai Financial Market Web site today. The results are inclusive of “portfolio revaluation and adjustments.” Revenue rose 10 percent to 676 million dirhams.
Deyaar achieved fourth-quarter earnings “despite growth challenges to the real estate sector,” Chief Executive Officer Markus Giebel said in the statement. It cut debt-to-equity ratio to eight percent to “strengthen the company’s capital position even further.”
Dubai is bracing for a slowdown of its once booming property industry as the global financial crisis crimps mortgage lending and speculators desert the market. Villa prices dropped 30 percent last month from a record high in September and apartment prices declined by 20 percent, according to a survey by HSBC Holdings Plc published on Jan. 21.
Deyaar introduced nine new residential projects in 2008, all of which received an “exceptional” response, Chairman Nasser Bin Hassan al-Shaikh said in the statement.
The company will aim to build larger mixed-use communities instead of just residential towers and will diversify into leasing as well as asset and fund management, according to the statement. It will also aim to develop middle-income housing projects in 2009.
Deyaar’s shares rose 4.4 percent to 0.48 fils on the Dubai Financial Market today, paring this year’s loss to 4 percent.
Set up in 2002, Deyaar raised $871 million in an initial public offering in May 2007 for projects in the United Arab Emirates, Saudi Arabia, Qatar and Kazakhstan. Deyaar’s developments include residential towers in Dubai Marina, Business Bay and Jumeirah Lake Towers in Dubai.
To contact the reporter on this story: Arif Sharif in Dubai at asharif2@bloomberg.net
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The Place Hotel Apartments has announced it will be expanding its Dubai offerings with The Place Palm Shoreline in Palm Jumeirah.
The property will be the company's second Dubai property following the opening of its hotel apartments in Park Place Tower on Sheikh Zayed Road in May 2008.
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