H1 2019 net profit slumps by 91% at Dubai-listed developer Damac

Damac delivered 1,476 units in the first half of 2019, including 315 units in Claret cluster of its Akoya development

Damac Properties is developing the Akoya master development.
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Damac Properties is developing the Akoya master development.

Dubai Financial Market-listed (DFM) real estate developer Damac Properties has posted a 90.5% decline in H1 2019 net profit, which dropped to $22.2m (AED82m) from $234.7m (AED862.1m) in the same period last year, with the company having delivered 1,476 units in the first half of the year.

In a stock market missive, the developer recorded total revenues of $517.4m (AED1.9bn) in the first half of 2019, while booked sales topped $490.1m (AED1.8bn) in the same period.

Damac noted completion on two of its projects in Dubai including 727-unit Shariah-compliant Ghalia and 34-storey Tower 108 in Jumeirah Village Circle. The company’s master development, Akoya, witnessed the delivery of 315 units in the Claret cluster in the first half of the year.

Half-yearly gross profits at the developer stood at $136.7m (AED502m), while total assets for the same period reached $6.7bn (AED24.7bn) compared to $6.9bn (AED25.2bn) as on 31 December, 2018.

For the first six months ending on 30 June, 2019, gross debt at the developer was $1.1bn (AED4.1bn), while cash and bank balances stood at $1.5bn (AED5.6bn) and development properties was $2.6bn (AED9.4bn). Shareholders’ equity in H1 2019 was $3.9bn (AED14.2bn) at the end of June 2019.

Commenting on the half-yearly results, chairman of Damac Properties, Hussain Sajwani, 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.”

He added: “We continue to focus on deliveries this year, completing and handing over projects that are in our development pipeline.”

Sajwani pointed that the developer has recorded significant progress on Damac Hills and Akoya.

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