Deyaar reports second quarter net profit of AED 75.40 million

1. Q2 gross revenues reach AED 402 million
2. Results in line with company forecasts and resource allocation
3. Reports positive cash flow
4. Over AED 100 million committed towards Deyaar Property Opportunity Fund as seed capital
5. Company on course to hand over seven projects this year

Deyaar Development PJSC, a regional real estate company dedicated to innovation, customer care and long-term sustainable growth, announced today its financial results for the three months ending June 30, 2009, demonstrating continued profitability and consistently strong operations across all business units despite challenging market conditions.

Deyaar’s net profit for the three months ending June 30, 2009, reached AED 75.40 million, in line with the company’s earlier forecasts and resource allocation strategy for 2009. This represents an increase of 38 per cent over the company’s net profit of AED 54.48 million for Q1 2009. Deyaar’s gross revenues for Q2 2009 stood at AED 402 million. Deyaar’s total shareholders’ equity stood at AED 7.4 billion, while total assets reached AED 11.3 billion.

The company also reported today that it continues to maintain a positive operational cash flow with sufficient liquidity for the future. In a clear indication of Deyaar’s financial strength, the company noted that it has committed AED 100 million towards the Deyaar Property Opportunity Fund as seed capital as of June 30, 2009.

While the global financial crisis continued to impact the company’s financial performance during the period, Deyaar performed strongly to move forward with its 2009 business strategy, which has been favourably received by all customers and investors.

In line with its commitment to deliver seven projects in 2009, the company delivered five projects in the second quarter of this year, including four residential projects in Dubai Silicon Oasis and Deyaar’s first project in Lebanon. By the end of the year, the company expects to have delivered nearly 4 million square feet of units for 2009. In July, Deyaar will hand over The Citadel, its premium commercial tower in Dubai’s Business Bay. The Citadel is one of the first projects to be delivered in Business Bay, where Deyaar is one of the largest developers.

“On behalf of Deyaar, I am very pleased to note that our financial results for the second quarter have been in line with our expectations and are reflective of our sound fundamentals,” said Markus Giebel, Chief Executive Officer of Deyaar. “Deyaar’s strong balance sheet performance in the first half of 2009 is a validation of our business strategy that has positioned us better to navigate through a challenging market. As a result of our unique approach, we remain on course to achieve our target of delivering seven projects in 2009. We look forward to continue delivering high value and best service to our customers and shareholders.”

About Deyaar:
Deyaar Development PJSC is one of the fastest growing real estate companies in the region. Headquartered in Dubai, the company has grown significantly since its inception to evolve into a complete one-stop real estate solutions provider. Today, Deyaar stands at the forefront of the regional real estate sector, with interests in real estate development, property and facilities management, marketing and sales. Deyaar’s strategic solutions and deep market insights have helped create exceptional value for its investors. The company currently manages over 16,000 commercial and residential properties. Its operations are divided across four key business units, vis-à-vis, property development, lease management, asset management, and fund management divisions. Deyaar is well positioned to play a pivotal role in the development of the region’s property landscape. The company complies with the Escrow legislation and all relevant property laws in the UAE. Deyaar is registered with the Real Estate Regulatory Authority under reference number 15/07.