Stock – Deyaar Regalia (Business Bay)
The Regalia at Business Bay. Deyaar will in upcoming quarters include sales proceeds from the tower launch, which will be one of Dubai's tallest on completion. Image Credit: Supplied

Dubai: The Dubai developer Deyaar weighed in with a Dh25.1 million net profit for the first quarter of 2002, extending the solid results from the fourth quarter of last year. The last profit tally is a 67 per cent increase from a year ago.

Revenues too showed gains, by 9 per cent, to Dh161.9 million as Deyaar launches the process to clear some of the accumulated losses by shrinking its capital base. “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 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 a parallel track, the developer is working on writing off the accumulated losses of D1.68 billion, which is 29.09 per cent of the share capital. A capital reduction process – approved by shareholders – is underway and will be ‘reflected in the market upon completing the related authorities’ approvals and formalities’.

Also in the process is reduce 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 increasing 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."