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Dubai: Damac Properties’ second quarter to June net profit more than tripled, triggering a 15 per cent rally in its shares.
Net profit for the second quarter was at Dh1.42 billion compared to Dh461 million in the year before period. Revenues came in at Dh2.32 billion in the same period.
For the six months to June, the property developer said its net profit jumped to Dh2.65 billion from Dh1.74 billion in the year earlier period.
Revenues were at Dh4.75 billion during the same period.
“The first half of the year has seen strong performance for Damac with booked sales of Dh5.109 billion showing that interest levels for the right real estate product at the right price remains robust,” said Hussain Sajwani, chairman of Damac said in a statement.
“We strongly believe that our sales and marketing initiatives and financial strength will help us further distinguish ourselves during this period in the cycle,” Sajwani said.
The board has proposed an interim cash dividend of 10 per cent, amounting to Dh550 million, along with a 10 per cent bonus shares to shareholders, equating to 550 million shares.
“The results are very positive, and we all are surprised with the numbers,” Sebastien Henin, head of asset management at The National Investor.
The company said its total assets grew by 11 per cent to be at Dh20.81 billion, compared to December 2014, while cash and bank balance stood at Dh8.73 billion, representing growth of 32 per cent compared to December 31, 2014.
Advances from customers stood at Dh5.92 billion as at June, while development properties stood at Dh7.51 billion till June.
After the announcement, Damac shares jumped as much as 15 per cent in a firm Dubai market, which closed 1.66 per cent higher at 4,164.69.
Source: Siddesh Suresh Mayenkar, Staff Reporter, gulfnews.com