Dubai developer Deyaar suffers $39.5 mln Q3 loss

Dubai developer Deyaar suffers $39.5 mln Q3 loss

Q3 net loss 145 million dirhams.

November 5, 2010 10:12 by Reuters

Deyaar , Dubai’s second-largest property developer by market value, suffered a third-quarter net loss of 145 million dirhams ($39.5 million), it said on Thursday, missing an analyst forecast.

The company, a rival of Emaar Properties and Union Properties , also said in a statement that gross revenue for the period came in at 63.5 million dirhams.

Deyaar’s total equity stood at 6.23 billion dirhams at the end of September, it said.

A Nomura International analyst had forecast that Deyaar would post a 53 million dirham loss, after the company made a profit of 81.6 million in the third quarter of 2009.

“The company remains committed to its consolidation and project completion strategy, including the handover of five Deyaar projects in the Business Bay area (in Dubai) in 2010,” the statement said.

In February, Deyaar’s former chief executive told Reuters the company was on track to hand over six projects in 2010 but it postponed a 500 million dirham distressed property fund that month due to difficult market conditions.

Dubai’s once-booming property sector has been hit hard by the global financial crisis as developers slowed or cancelled projects and jobs were slashed.

Deyaar said in June it is returning the management of a residential project to its owner National Bonds, the national savings scheme of the United Arab Emirates.

(Reporting by Firouz Sedarat; Editing by Jon Loades-Carter) ($1=3.672 dirhams)