Business | Markets
Deyaar enjoys 105 per cent growth in profit
Deyaar announced record net profit of Dh1.1 billion, a stellar increase of 105 per cent, especially staggering in light of the economic situation.
- By Suzanne Fenton, Staff Reporter
- Published: 23:25 January 25, 2009
Dubai: Deyaar announced record net profit of Dh1.1 billion, a stellar increase of 105 per cent, especially staggering in light of the economic situation.
The company's net profit stood at Dh540 million in 2007.
Deyaar's full year revenues reached Dh2.9 billion in 2008, up 136 per cent from the year before.
The company's debt-to-equity ratio was also reduced to eight per cent, a clear sign that Deyaar is in a good position to further capitalise on growth opportunities in 2009.
Net profit in the fourth quarter was Dh343 million, up 59 per cent on the same quarter in 2007. Deyaar's revenues in the fourth quarter reached Dh676 million, up 10 per cent from 2007.
The fourth quarter figures include the portfolio revaluation and adjustments made in line with current market conditions.
While the launch of an initial public offering (IPO) in 2007 may have helped, the extraordinary success may be put down to the phenomenal growth of 2008.
"The start of 2008 was a very good time for most companies. It was really the peak of the real estate period. It was only the last quarter of 2008 that business completely stopped," Barmak Besharaty, managing director of Al Mas Capital, told Gulf News.
It is likely then that most real companies would also have a growth in net profits for the same reason.
"I wouldn't be surprised if most companies did [have growth] in 2008 as it was phenomenal before," Besharaty added.
It appears that despite the financial worries circulating the globe, some real estate companies are still registering impressive growth.
"Our net profit more than doubled in 2008 and grew by 10 per cent in the fourth quarter of 2008 over our net profit in the third quarter, despite growth challenges to the real estate sector at large," Markus Giebel, chief executive of Deyaar said.
Giebel also said the reduction in the company's debt-to-equity ratio to eight per cent means the company is better positioned to strengthen capital even further.
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