Deyaar Development

1. Company Overview & Earnings Context

Deyaar Development PJSC is one of Dubai's leading real estate developers, listed on the Dubai Financial Market (DFM). The company operates across property development, leasing, facilities, and property management, and hospitality, with Dubai Islamic Bank serving as its ultimate controlling shareholder. During H1 2026, Deyaar delivered another strong financial performance, supported by robust property development activity, higher other income, improved finance income, and continued cost discipline, resulting in double-digit growth in profitability despite modest revenue growth.

2. Financial Performance Snapshot

• Revenue: AED 952.6 Million (+2.9% YoY)

• Direct Costs: AED 624.0 Million

• Gross Profit: AED 328.6 Million

• Other Income: AED 47.0 Million

• Finance Income: AED 25.6 Million

• Profit Before Tax: AED 336.1 Million (+26.1% YoY)

• Income Tax Expense: AED 37.8 Million

• Net Profit: AED 298.3 Million (+20.0% YoY)

• Earnings Per Share (EPS): 6.32 fils (vs. 5.74 fils YoY)

Compared with H1 2025:

• Revenue increased 2.9% to AED 952.6 million.

• Profit before tax increased 26.1% to AED 336.1 million.

• Net profit increased 20.0% to AED 298.3 million.

• Earnings per share increased from 5.74 fils to 6.32 fils.

3. Operational Highlights & Key Metrics

• Total Assets: AED 7.98 Billion

• Total Equity: AED 5.73 Billion

• Cash & Bank Balances: AED 2.31 Billion

• Properties Held for Development & Sale: AED 1.04 Billion

• Investment Properties: AED 956.3 Million

• Trade, Contract & Other Receivables: AED 1.64 Billion

• Net Cash Generated from Operating Activities: AED 307.8 Million

• Property Development Revenue: AED 821.9 Million

• Property Development Profit: AED 274.3 Million

• Properties & Facilities Management Revenue: AED 88.0 Million

• Hospitality Revenue: AED 42.7 Million

• Dividend Paid During H1 2026: AED 218.8 Million (5 fils per share)

4. Key Performance Drivers

Deyaar's H1 2026 performance was primarily driven by continued strength in its property development business, which remained the largest contributor to both revenue and profitability. Higher other income, improved finance income and lower general, administrative and selling expenses further supported earnings growth, while strong operating cash flow generation and disciplined project execution strengthened the company's financial position. Property development continued to account for the majority of earnings, complemented by stable contributions from facilities management and hospitality operations.

5. Outlook & Forward Guidance

Management remains focused on advancing its property development pipeline, enhancing recurring income through leasing and facilities management, and maintaining prudent capital allocation. Supported by a strong liquidity position, healthy operating cash flows and a robust balance sheet, Deyaar is well positioned to capitalize on continued demand in Dubai's real estate market while executing its long-term growth strategy.

6. Investor Takeaway

Deyaar delivered another solid first-half performance, with modest revenue growth translating into significantly stronger profitability. Supported by its core property development business, strong cash generation, and a healthy balance sheet, the company continues to demonstrate operational resilience and remains well-positioned to benefit from sustained momentum in Dubai's real estate sector.