Damac's nine-month profit hits $626m, sales up 13pc
DUBAI, October 18, 2017
Damac Properties, a leading luxury project developer in the Middle East, has reported a net profit of Dh2.3 billion ($626 million) for the first nine months and has also booked sales of Dh6 billion ($1.63 billion), up 13 per cent over last year.
Announcing the results, the Emirati developer said its total revenue for the period till September 30, 2017 surged to Dh5.8 billion.
During this period, Damac had delivered a total of 1,923 units comprising 852 units in international projects in addition to 1,071 units in Damac Hills (Dubai).
This included 454 units in the two-tower residential and hospitality project Damac Esclusiva (Riyadh), in addition to 398 units in The Heights (Amman), its first project in Jordan (The Heights) comprising three towers.
During the third quarter, Damac also significantly ramped up its leasing activities, with a rental portfolio comprising apartment units at Damac Hills, 95 per cent of which have been leased out to date.
Furthermore, Damac also commenced operations at its latest hotel property, the 305-key Damac Maison Royale The Distinction, in Downtown Dubai, bringing the number of hotels in operation to six, with 1,784 keys in the portfolio, said the top developer.
The total cash and bank balances stood at Dh7.9 billion, while earnings per share for the nine-month period stood at Dh0.38 and gross debt at Dh5 billion, it added.
On the performance, Hussain Sajwani, the chairman of Damac Properties, said: "Dubai’s property market has been steadily solidifying in 2017, with increasing sales transactions and robust fundamentals, and our medium to long term outlook remains positive."
"We have a strong value proposition and continue to appeal to a broader spectrum of buyers with a range of products at attractive price points," he noted.
"We remain dynamic and our product innovation has contributed to sustained demand for a number of our projects including Aykon City, Damac Hills and Akoya Oxygen," he added.
Damac said the construction work was progressing well on 6,300 villas at Akoya Oxygen, and the 18-hole championship golf course continued to take shape.
The community’s amenities, including well-being facilities and retail outlets, in addition to hospitality and food and beverage elements, are in various stages of planning and progress, it stated.
During the third quarter, Arabtec Construction was awarded a Dh628-million contract for the design and construction of the main works for 1,296 villas at the golf community.
Also during this period, Damac forged an association with the Roberto Cavalli Group and launched ‘Just Cavalli’ villas, to feature the designer’s distinctive signature style in villas at Akoya Oxygen, its second master community in Dubailand, said the statement.
With the introduction of ‘Just Cavalli’ villas, Damac expanded its villa offering to include new villa types designed for buyers seeking value in an integrated golf community and continues to bring exclusive living concepts to investors from around the world, it added.
"Dubai’s property sector is feeling the positive effects of the emirate’s appeal and growing sophistication on the world stage," remarked Sajwani.
"This is evident from the growing real estate sales transactions recorded at Dubai Land Department and we are confident of the growth prospects for the sector going forward," he added.-TradeArabia News Service