DAMAC’s Q1 net profit falls 16 percent to $240mn
DAMAC Properties reported a 16.2 percent fall in first quarter net earnings despite a rise in sales.
The Dubai developer booked a net profit of AED 880.4mn ($239.7mn) for the three months to March 31, down from AED 1.05bn in the same period last year, according to a statement.
First-quarter revenue came in at AED 1.95bn, up from the AED 1.62bn posted in the same period a year earlier.
The reason for the drop in earnings was the big rise in the cost of sales to AED 887.3mn from AED 632mn in the same period of last year.
Total assets increased by 6.3 percent to AED 26.17bn compared to AED 24.63bn at year-end 2016.
Commenting on the first quarter results, Hussain Sajwani, Chairman of DAMAC, said, “With no major fluctuations in prices but with an increase in volumes and transactions in the market in general, we can say Q1 2017 has been strong, with booked sales of AED2.2 billion.”
He added: “There is continued demand for quality real estate that presents better value. Despite the challenging market conditions, our medium to long-term outlook remains positive, as we remain dynamic and continue providing the right products that suit the changing market needs.”