• Home /
  • Damac Properties net profit plunges 90.5% to Dh81.63 million in the first half of 2019

Damac Properties net profit plunges 90.5% to Dh81.63 million in the first half of 2019

August 14, 2019

Damac Properties net profit plunged 90.53 percent to Fh81.63 million in the first half of 2019, down from Dh862 million recorded in the first half of 2018, its half yearly reports show.

The developer reported a total revenue of Dh1.9 billion, with booked sales reported at Dh1.8 billion during the first half of 2019.

Gross profits for the same period stood at Dh502 million reflecting gross profit margins of 27 percent. Total assets stood at Dh24.7 billion compared to Dh25.2 billion as of 31st December 2018, while net profit stood at Dh82 million in the first half of 2019.

Damac said, it has reduced its gross debt by Dh1.4 billion in last 12 months to 4.1 billion as at June 30, 2019, while cash and bank balances stood at Dh5.6 billion and development properties stood at Dh9.4 billion. Shareholders’ equity stood at Dh14.2 billion as on 30th Jun 2019.

Damac delivered 1,476 units in first half of the year. This also includes the first ever handover in Akoya, the company’s largest master development, with nearly 315 units in the Claret cluster completed and in the process of being handed over to customers. Damac also completed two other projects in Dubai namely Ghalia and Tower 108.

Hussain Sajwani, Chairman of Damac Properties, said, “The first half of 2019 witnessed events like the launch of our latest project, Zada, in Business Bay and the first handover in Akoya. We continue to focus on deliveries this year, completing and handing over projects that are in our development pipeline. We have made significant progress in our master communities, Damac Hills and Akoya, and both communities are welcoming many more residents this year. We remain financially robust, and with the UAE economy poised for growth in the coming years, we are looking forward to an upturn in the real estate sector.”

“We thank and support the UAE’s leadership who have long cemented the country as a global hub for business and innovation. Their efforts and proactive response to global shifts have ensured that the UAE continues to grow,” Sajwani added.

“We also thank our employees, customers, partners, and shareholders who share our commitment to our vision for better communities, and have helped us transform Damac from its modest beginnings into a master developer with nearly 26,000 homes delivered.”

Damac Properties has a development portfolio of over 40,000 units at various stages of progress and planning, comprising more than 10,000 hotel rooms, serviced apartments and hotel villas, which will be managed by its hospitality arm, Damac Hotels & Resorts.