Dubai: Damac Properties reported an 18.56 per cent decrease in the first-half 2017 profit to Dh1.58 billion compared to Dh1.94 billion despite the real estate market stabilising.
But the property developer’s revenues increased 4.45 per cent to Dh3.52 billion in the period compared to Dh3.37 billion a year ago.
Hussain Sajwani, chairman of Damac Properties, said in a statement the property market in Dubai continues to demonstrate further stabilisation, and the medium- to long-term outlook remains positive.
“Our strong first-half sales performance can be attributed to continued demand for a number of our projects including Aykon City, Damac Hills and Akoya Oxygen,” he said in a statement.
As of June 30, Damac’s booked sales for first-half stood at Dh4 billion, and delivered 1,071 units in Damac Hills, Dubai.
Total cash and bank balances stood at Dh8.6 billion, while earnings per share for the first half came to Dh0.26. Gross debt stood at Dh5.4 billion during the period.
An additional 1,071 units were delivered at its Damac Hills master development in the first half, bringing the total number of delivered units there to over 3,100.
For the second quarter, the developer’s profit fell 20.92 per cent to Dh701,322 from Dh886,834 a year ago. Revenues during the period fell by 10.29 per cent to Dh1.57 billion compared to Dh1.75 billion in the same period last year.
In February, Damac celebrated its flagship golf development with the opening of the Trump International Golf Club Dubai, the first of its kind in the Middle East, offering world-class golfing on an 18-hole championship course and exquisite leisure, dining and entertainment experiences.
Construction continues on circa 5,000 villas at its Akoya Oxygen master community in Dubailand, with a further 1,300 villas scheduled to begin construction in September 2017. Akoya Oxygen includes contemporary residential properties of various sizes surrounding an 18-hole championship golf course, along with an organic produce market, hydroponic café, luxury wellness centre, outdoor yoga enclave and retail outlets featuring well-known brands.
Quoting a Dubai Land Department’s report, Sajwani said property transactions in the first half stood at Dh132 billion, a sizable gain over Dh113 billion a year ago.
“We are optimistic that the sector will continue to sustain this growth through the remainder of the year,” he said.
Construction is almost complete on the Damac Towers by Paramount Hotels & Resorts, a four-tower, 250-metre high development consisting over 2,000 units, and includes a luxury hotel and serviced branded residences in Business Bay. Progress on the Damac Heights, an 86-floor tower with uninterrupted views of the sea and Palm Jumeirah is also nearing completion.
