Deyaar Development, the Dubai real estate company 41 per cent-owned by Dubai Islamic Bank, posted a 37.6 per cent drop in fourth quarter net income and a 40 per cent plunge in 2017 net profit, as one-off gains in 2016 were not repeated.
The developer's net profit declined to Dh30.1 million for the three months ending in December from Dh48.2m for the year-earlier period, based on calculations by The National from income statements.
Full year net profit fell to Dh130.4m from Dh216.1m in 2016, the company said.
“Net profit in 2016 included a write-back of provision for impairment of investment in an associate and fair valuation gain on investment properties,” the developer said.
Full-year revenue rose 75 per cent to Dh751.6m from Dh428.3m due to progress in Deyaar's Midtown development in Dubai, which is slated for completion in the third quarter of 2019.
Residential rents and prices in Dubai have been declining in the past two to three years. Lower oil prices have impacted the UAE's growth, leading to job losses and lower housing allowances, amid an increase in supply for residential units.
Deyaar expects to hand over two hospitality projects this year, The Mont Rose and The Atria, marking its first entry into the sector.
“2017 witnessed significant progress in our projects and our hospitality division, as part of our commitment to diversifying our offering in line with the requirements of the UAE market, in addition to continued work on our portfolio of properties” said Saeed Al Qatami, chief executive of Deyaar. “We are optimistic that 2018 will be a year of positive growth for our company.”
In April, Deyaar awarded Belhasa Engineering and Contracting Company a Dh600m contract for its Midtown Afnan and Dania districts.