Damac's first half sales jump 57% to $992mn

Over 30% of revenues come from sales of land for villas at Akoya

Akoya By Damac villas.
Akoya By Damac villas.

Damac Real Estate has reported a 57% increase in revenue during the first half of 2014 to $991.9mn, driven by higher revenues from development activities.

Net profits also climbed by 39% to $462.9mn for the same period.

Almost one-third (31%) of revenues achieved during the period were done so through the sale of villas in its Akoya by Damac project in Dubailand, amounting to $305mn. The firm also highlighted the handover of its first project outside the UAE - the Al Jawharah tower in Jeddah, Saudi Arabia, as a contributing factor.

The company, which recently announced that it had bought a 55mnft2 plot in Dubailand for $513mn - which is 30% bigger than the existing 42mnft2 plot on which Akoya is being built - said that it had increased the total amount of booked sales achieved by 75% to $1.68bn (2013: $960mn).

It also said that it was progressing with completions, with 1,634 units finished during the first half of the year.

"As per guidance given, we are on track to complete a total of 4,00-5,000 units during 2014," said executive chairman Hussein Sajwani.

Its Damac Heights project in Dubai Marina has now progressed above level 25, while its Damac Tower in Beirut has topped out. The Trump-branded golf course, which is the centrepiece for many of the Akoya villas being built, is still on course to be grassed by early 2015.

The company, which now employs 1,800 people, is paying a dividend of almost 25c per share to investors, or around $162mn.

"The first half of the year has seen the company deliver another period of growth, building on the strong results we announced for the full year 2013 and reflecting the continued strengthening of the markets in which we operate," Sajwani said.

"Looking ahead, we expect Dubai's strong economic fundamentals, regional safe-haven status and improving business sentiment, assisted by the policies put in place coupled with the growing number of visitors to the Emirate, to contribute to ongoing growth."

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