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Sajwani ..... Damac's four-phased strategy a big success.

Damac nine-month profit surges 65pc

DUBAI, November 12, 2014

Dubai-based luxury real estate developer Damac has registered a 65 per cent growth in its net profit for the first nine months which soared to $687.2 million from $416.4 million last year, mainly driven by the growth in recognised revenues.

Announcing the results, Damac said its operating profit surged in the first nine months to hit $688.1 million compared to $416.8 million last year.

The company's recognised revenue grew by 98 per cent to $1.56 billion during the nine-month period compared to $792.5 million last year. This comprised the development income attributed to the completion and handover of 2,581 units across seven projects in addition to the sale of land, which generated revenue of $600.5 million.

The projects completed during the third quarter were The Vogue, Capital Bay and two buildings of Lincoln Park.

Damac saw its revenue grow by 259 per cent to $577.3 million in the third quarter compared to $161 million in the same period last year. Its gross profit increased by 84 per cent to $909.5 million from $493.5 million last year.

The cashflow generated from operations grew to $741.2 million for the nine months mainly driven by higher booked sales resulting in increased cash collection as advances from customers and higher profit generated during the period.

Damac saw its total assets surge 60 per cent to $4.86 billion as on September 30 compared to December last year, primarily led by an increase in cash and bank balances and increase in development properties.

The development properties soared to $2.3 billion, as on September 30, registering a 19 per cent growth over last year primarily due to the additions to land bank, comprising Akoya Oxygen and few other plots, partially offset by deliveries during the nine-month period.
 
Commenting on the performance, Hussain Sajwani, the executive chairman and CEO, said: "This is another solid set of financial results, which show significantly improved profitability that has been driven by an increase in revenues as a result of strong sales activity and the completion and handover of a number of key projects."

"In the first nine months we have continued to deliver on our four-phased strategy of buy, design, sell and build, whilst continuing to maintain a robust balance sheet, impressive margins, and ensuring our developments meet the high quality customers have come to associate with the Damac name," he explained.

According to him, the launch of Akoya Oxygen has added another iconic project to its development portfolio.

"In August, the first release of houses for the project sold out in record time, illustrating the high levels of demand for lateral luxury living, combined with top-class leisure facilities and open spaces, as well as for our prime residential apartments in the heart of the city," he stated.

"Our other master development, Akoya by Damac, is making good progress, and last month we were very pleased to announce the extension of The Drive at Akoya to 2.5 km after receiving a positive response from customers. This will make it the longest outdoor shopping and entertainment option in Dubai and the region," he added.-TradeArabia News Service




Tags: Dubai | Damac | profit |

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