Deyaar Development is a tough sell to investors these days. The Dubai developer's stock's price is down 36 per cent from November, when it posted a Dh525 million loss for the first nine months of last year.
While many UAE property and construction companies have struggled in recent months, Deyaar faces some special long-term challenges. Its board yesterday recommended a dividend should not be issued for last year, which was hardly a surprise. The company did not pay a dividend in the previous two years.
Deyaar is about to realise revenue from a wave of projects started in 2007, before the global property downturn. But it is unclear how the company is going to raise capital for future development, said Chet Riley, an analyst with Nomura Securities, which has a negative rating on the company's stock.
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