Damac Properties, a leading player in the UAE luxury real estate development sector, has reported a total revenue of Dh7.5 billion ($2.04 billion) for 2017, up four per cent over last year besides clocking a net profit of Dh2.8 billion ($762 million).

Announcing the financial results for the year ended 2017, Damac said its gross profit for the year stood at Dh3.6 billion, nine per cent lower than last year as gross margins declined to 48.8 per cent versus 55.9 per cent last year.

Margin decline was mainly due to international project deliveries during the year; the UAE projects margin remains healthy at 52.1 per cent, stated the Dubai developer.

As of 31 December 2017, Damac’s booked sales stood at Dh7.5 billion versus Dh7 billion in 2016.  

Total cash and bank balances stood at Dh7.5 billion. Gross debt stood at Dh4.8 billion as at 31 December 2017. This represents a debt to equity ratio of 0.34 versus 0.30 as at 31 December 2016, said Damac in its statement.

Earnings per share stood at Dh0.46 for 2017. The board proposed dividend of Dh1.5 bn (Dh0.25/share) for year ended 2017 which will be paid upon approval by the relevant authorities, and the shareholders during the general assembly.

The Dubai-based luxury developer had delivered a total of 20,236 units as of 31 December 2017, marking a milestone for the company and the industry as a whole.

"Dubai’s property market continues to show growth as increasing demand returns to the market, and this is reflected in our booked sales. Our medium- to long-term outlook remains positive, with continued local demand as well and stronger interest by international investors," remarked Hussain Sajwani, the chairman of Damac Properties.

"Our major projects in Dubai including Damac Hills, Akoya Oxygen and Aykon City continue to appeal to expats and international investors alike, while our diverse product portfolio continues to attract a wide variety of buyers for our off-plan and ready properties," he stated.

Damac expanded its villa offering at Akoya Oxygen, its second master community in Dubailand, introducing new villa types designed for buyers seeking value in an integrated golf community.

It’s partnership with the Roberto Cavalli Group in 2017 led to the launch of the highly-successful ‘Just Cavalli’ villas, featuring the designer’s distinctive signature style.

During 2017, Damac delivered a total of 2,304 units comprising 1,452 units in Damac Hills and 852 units at its international developments, including its two-tower project in Saudi Arabia (Damac Esclusiva – 454 units) as well as its first project in Jordan (The Heights – 398 units) comprising three towers.

Damac’s residential leasing at Damac Hills comprised of 328 units, and is 97 per cent leased out as at 31 December 2017. The company also commenced operations of its 305-key Damac Maison Royale The Distinction, in Downtown Dubai, bringing the number of hotels in operation to six.-TradeArabia News Service