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Dubai’s Deyaar Development made a net profit of 36.3 million dirhams ($9.9 million) in Q3 2022 compared with AED8.2 million in the same time last year, driven by new project launches and the continuing recovery in the property market.
Revenue for the quarter came in at AED207.7 million compared with AED120.7 million in the same period in 2021, the developer said in a regulatory filing on the Dubai Financial Market on Thursday.
For the nine-month period, the developer posted a net profit of AED103 million compared with AED30.8 million in the year-go period.
In a board meeting on Wednesday to approve the financial statements, the Deyaar board recommended approving a AED500 million cash settlement offer from Limitless, a Dubai-based developer, related to a dispute over the purchase of land. The board has called for a general meeting of shareholders to approve the settlement.
Deyaar, which is majority owned by the UAE’s biggest Sharia-compliant lender Dubai Islamic Bank, had earlier said the settlement offer includes both cash and land.
In 2019, a UAE court had ordered Limitless, to pay AED412 million to Deyaar to settle the dispute and pay fees as well as compensation of AED61.1 million and an interest of 6%.
Earlier in April this year, the company board won shareholder nod to write off the accumulated losses amounting to AED1.7 billion through the company’s legal reserve amounting to AED303.4 million, and cancellation of shares equivalent to the remaining accumulated losses amounting to AED1.4 billion.
(Reporting by Brinda Darasha; editing by Daniel Luiz)
