Dubai: Damac reports 45% drop in its Q1 2018 net profits
Dubai-based developer, Damac Properties, posted a 45% drop in its net profit for the first three months of the year, to AED484mn from AED880.4mn for the same period last year.
Announcing the financial results for the first quarter, Damac said its total revenue rose to AED1.9bn in Q1 2018, with booked sales reported at AED1.6bn. The group’s net profit stood at AED484mn in the first quarter, marginally higher than AED459mn reported in the fourth quarter of 2017. Total assets too increased by 4.6% to AED26.5bn compared to AED25.3bn as at December 2017.
By the end of the quarter, the Dubai developer had handed over 648 units at its Damac Heights tower, in Dubai Marina, while gross profits stood at AED761mn reflecting profit margins of 40%.
Chairman Hussain Sajwani commented: “Dubai’s property market continues to attract investors from around the world, thanks to Dubai’s visionary leadership and the emirates’ global appeal as one of the safest, happiest and fastest growing cities in the world while local and international demand for our projects remains strong.
“Dubai continues to expand on its proposition as a leading destination for tourism, business and investment, with ongoing infrastructure development leading up to Expo 2020. Damac has been at the forefront of the Middle East’s luxury real estate market since 2002 – bringing luxury living experiences to residents from all over the world.”
The company’s footprint now extends across the Middle East with projects in the UAE, Saudi Arabia, Qatar, Jordan, Lebanon, Oman, and the United Kingdom, added Sajwani. “Dubai remains one of the world’s most attractive places to live and work, which ultimately delivers long-term benefit to the real estate sector as a whole.”
As of December 31, 2017, Damac has delivered over 20,230 homes. The company has a development portfolio of over 44,000 units at various stages of progress and planning, comprising more than 13,000 hotel rooms, serviced apartments and hotel villas, which will be managed by its hospitality arm, Damac Hotels & Resorts.