Dubai property developer Deyaar on Sunday reported a 47 percent rise in second-quarter net profit as it gained from lower costs and fair-value adjustments of prices for its investment properties.
Deyaar, one of the companies worst hit by Dubai’s real estate market collapse in 2009-2010, posted a consolidated net profit of 27.3 million dirhams ($7.4 million) compared with 18.6 million dirhams in the corresponding period of 2012.
One analyst at SICO Bahrain had forecast a second-quarter profit of 6 million dirhams.
Revenue for the quarter dropped to 93.6 million dirhams from 143.5 million dirhams in the prior-year period.
The developer made a gain of 36.6 million dirhams in the quarter from fair-value adjustments for its investment properties. Direct costs for the quarter fell to 2.2 million dirhams from 82.9 million dirhams.
Property firms in Dubai began recovering last year after prices dropped by over 50 percent over several years from their peak in 2008. In July, Dubai’s largest developer Emaar Properties reported a 10 percent rise in second-quarter net profit
Source : Reuters