Damac's net profits soar to Dh3.67b for nine months

Akoya by Damac - High-end living at its bestImage Credit: Damac Properties

The DFM-listed Damac Properties Dubai has confirmed net profits of Dh3.67 billion for the first nine months of the year and a gain of 43 per cent over the same period in 2014.

Revenues weighed in at Dh6.77 billion, helped along by a steady stream of new project releases the developer had through the year, most notably at its ''Akoya'' projects.

The numbers also confirm what has been a fruitful third quarter for the listed real estate majors in Dubai and Abu Dhabi as well as for privately held Nakheel. The big names have all seen solid gains on profitability. What's been interesting about them is that these have been delivered against the backdrop of a general softness in property buying activity in Dubai.

The Damac numbers were helped by the gross profit margin inching its way back into 60 per cent plus territory. ''These numbers show that the Dubai real estate market remains healthy,'' said Hussain Sajwani, chairman of Damac. ''We expect prices to continue to stabilise as we operate in a now mature real estate market.

''This is the natural progression for any developing market which ensures long-term sustainability. Further ahead, continued economic and demographic growth, together with ambitious infrastructure spend and global world-class events, should support the market through 2020.''

Damac's asset base increased by 18 per cent to Dh22.15 billion ($6.03 billion) as of September 30, compared with what it was on December 31, 2014.

Powerful differentiator

''We have developed a market leading brand firmly positioned in the luxury sector and we believe this is a powerful differentiator from our competitors,'' said Sajwani.

Net cash from operating activities was a healthy Dh2.33 billion, while booked sales totalled more than Dh7 billion, ''which shows continuous good interest in the products'', the company said in a statement. Total area sold was 6.24 million square feet in the nine months, 8.5 per cent higher than in 2014.

Cash and bank balances were Dh9.87 billion, and the development properties were recorded at Dh7.74 billion.

''It is anticipated that 2,500 units will be delivered across the portfolio in 2015,'' the company added in the statement. ''During 2015, the Dubai real estate market has continued to mature, with growth stabilisation across the period. This is a natural progression for any developing market which ensures long-term sustainability.''

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Source: Manoj Nair, Associate Editor, gulfnews.com


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