Deyaar, a Dubai developer, reported a Dh25.1 million net profit in the first quarter of 2022, continuing its strong performance from the previous quarter. The most recent earnings total is a 67% increase over the previous year.
Revenues increased by 9% to Dh161.9 million as Deyaar began the process of reducing its capital base to eliminate some of the accrued losses. “The results of the first quarter come as a continuation of the positive results achieved by the company last year,” said Saeed Al Qatami, CEO. “Thanks to our strategy in diversifying the revenue stream by strengthening our projects portfolio, property and facilities management services, in addition to the hospitality sector.
“These results did not include any revenues from the Regalia project (a Dh700 billion skyscraper at Business Bay launched last year). We expect an increase in revenues in the coming months attributable to revenues to be recognized from our Regalia Project, which was successfully sold out with a total value of nearly Dh1 billion.”
Address losses
On the other hand, the developer is seeking to write down D1.68 billion in accumulated losses, or 29.09 percent of the company’s share capital. A capital reduction process is underway, with shareholder consent, and will be “reflected in the market once the appropriate authorities’ approvals and formalities are completed.”
Also in the process reduces the capital by using the legal reserves and cancellation of a certain number of shares to write off the collated loss. On the operational side, “The company now has three projects in the hospitality sector which will contribute to increased revenues in the coming years. The company will continue to launch quality projects, and also keen to diversify its sources of income through property and facilities management services.”