Property developer Deyaar on Wednesday reported a marginal increase in quarterly net profit as it slashed costs to offset a sharp drop in revenues following Dubai’s property market collapse.
Deyaar, the emirate’s second largest developer by market value, made a net profit of Dhs18.6 million ($5 million) for the quarter, compared with Dhs18.1 million made during the same period in 2011, it said in a statement on the Dubai bourse.
However, revenue for the quarter more than halved to Dhs143.3 million from Dhs334.3 million in the prior-year period.
The company reduced direct costs in the quarter to Dhs82.9 million from Dhs328 million.
Deyaar, badly hit by Dubai’s property bust, continues to reel under the impact of the global financial crisis. The company plans to focus on completing existing real estate projects.
The developer said it delivered two projects in the second quarter and will hand over two more projects during this year.
Property firms in the emirate have fared better in the second quarter this year with Emaar Properties and Union Properties reporting an increase in profits.