Thursday 24 September 2020

Damac posts $1.2bn revenue, 4,700 residences delivered

DUBAI, February 11, 2020

Leading UAE developer Damac Properties has announced preliminary financial results for the year ended December 2019, reporting booked sales of Dh3.1 billion ($844 million) and unit deliveries of 4,700 units in its development pipeline.

Announcing the financial highlights for year ended 2019, Damac said the total revenue for the year hit Dh 4.4 billion, while the shareholders’ equity stood at Dh14.1 billion. The Emirati group's total assets soared to Dh23.8 billion as of December 31, 2019.

The Dubai developer said it had focused throughout 2019 on deliveries and execution of projects in the construction pipeline. The year marked the first deliveries in the master development Akoya alongside other projects in Dubai, it added.

On its performance, Chairman Hussain Sajwani said: "In Dubai, our primary market, we maintained our focus on completing and handing over units in our development pipeline. We have selectively launched fewer projects in softer market conditions to avoid adding new commitments and focus on selling completed and near completion inventory."

"Cash and liquidity management remains of paramount importance for Damac given the cyclical nature of the industry we operate in, Damc has historically paid for its land and debts commitments on or ahead of schedule," stated Sajwani.

"Damac continues to maintain a healthy financial and liquidity position and has reduced gross debt by Dh1.6 billion in last 18 months," he said.

“Thanks to the reform-oriented leadership of this country, the market is poised for a long-term upswing. From announcing long-term visas to boost demand, to the establishment of the Higher Committee for Real Estate to create a balance between supply and demand, government initiatives remain the key driver for the sector’s growth,” he added.

On the future plans, Sajwani said: "We look forward to 2020 as Dubai gears up to host the world for Expo 2020."

"The short- and long-term impact of this global event will undoubtedly boost all sections of the economy, which will have a positive impact on the real estate sector," he added.-TradeArabia News Service


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