Developer reports 25.8% drop in net profit for 2016 but says it is ‘cautiously optimistic’ about the year ahead
The Dubai developer Deyaar says it is “cautiously optimistic” about the year ahead despite reporting a 25.8% decline in profits for 2016.
The company said it made a net profit of AED 216 million last year, compared to AED 291 million in 2015, according to a statement to the Dubai Financial Market. Revenues rose to AED 428 million from AED 257 million in 2015.
The “sharp increase” in 2016 revenues was “mainly due to construction progress in the developer’s The Atria and Mont Rose projects”, Deyaar said.
This in turn led to a 55 per cent increase in 2016 operating profit to AED 218.9 million, compared to AED 141.4 million in 2015.
“The measures taken by Deyaar to generate efficiencies, optimise our business model and deliver great product to the market have continued to produce results in 2016. While there is no doubt the market faced challenges in 2016, real estate remained a standout asset class for investment,” said Saeed Al Qatami, CEO of Deyaar.
“With key projects like The Atria and Mont Rose scheduled for delivery in 2017, the commencement of work on the Midtown master development, our ambitious plans for the hospitality sector with around 1000 keys under development, the intention of launching new projects and as well as our recently announced plans for Dubai South, the Deyaar team is cautiously optimistic about prospects for the year ahead.”