Eshraq Properties, the Abu Dhabi-based company whose projects include residential developments on Al Reem Island, today said that its profit in the second quarter dropped 97 per cent amid a sharp fall in revenues.
Net income decreased to Dh916,840 in the second quarter from Dh28.5 million in the same period last year. Revenues fell to Dh4.9m in the three months ended June 30 from Dh59.6m in the same period last year, the company said. The company did not elaborate on reasons for the decline in revenues.
Eshraq shares were down 4.0 per cent in midday trading today.
The profit decline comes even as rents and housing prices have increased across the board in the capital, apart from Al Reem Island, where there was a decline in sales prices for two and three-bedroom apartments, according to a second- quarter report published by the classified website dubizzle last week. Two-bedroom apartments on Al Reem dropped in price by 2 per cent to Dh1.96m, and three-bed units fell by 5 per cent to Dh2.8m.
Elsewhere, Manazel Real Estate, another Abu Dhabi-based property developer, said its first- half profit almost tripled amid improved margins from the sale of properties and a reduction of costs in running its business.
Its net income increased to Dh45m in the first six months of the year from Dh16.1m in the same period last year. Manazel, which listed on the Abu Dhabi stock exchange in November, didn’t break down its profit for the second quarter alone.
Manazel shares were up 1.5 per cent in midday trading.
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