Dubai: Damac's Q1 2016 net profit slumps 15%
In a bourse filing, Damac said it expects to deliver 2,700 to 3,000 units across its portfolio in 2016
Dubai-based luxury real estate developer Damac Properties reported a drop in its net profits for the first quarter of 2016.
During the first three months of 2016 ending 31 March, Damac recorded net profit of $285m (AED1.05bn), 15% lower than Q1 2015 figures.
Revenues for Q1 2016 stood at $435m (AED1.6bn), and gross profit margin stood at 61%.
Cash and bank balances for the developer stood at $2.5bn (AED9.4bn), while development properties' value was also recorded at $2.5bn (AED9.4bn) for the period.
Net cash generated from operating activities amounted to $65.6m (AED241m) and the three months EPS of $0.04(AED0.17) per share.
According to the bourse filing, it is anticipated that the firm will deliver 2,700 to 3,000 units across its portfolio in 2016.
In the first quarter, 306 units were delivered in the Damac Maison Royale The Distinction project in Business Bay.
During the reporting period, booked sales reached $544m (AED2bn), in line with Q4 2015, and 5% growth from the lows of Q3 2015, "which shows continuous good interest in our products and the Dubai market", Hussain Sajwani, the chairman of Damac said.
He added: "The Dubai market is defying the skeptics.
"The levels of interest, activity, transaction values and volumes are solid.
"Our own contribution to this landscape Aykon City is adding to our portfolio of projects offering luxury living experiences and sound investment opportunities to the international investment community," he added.
"We believe Dubai is well set for continued growth, and we expect the city will consistently outperform more established metropolitan centers around the world.
"This outperformance is underpinned by a stringent and efficient regulatory framework which supports the Government’s vision to create a sustainable city which enhances the experience for those living, working and visiting Dubai.”
Damac recently introduced the Aykon City project, a 37.1ha development comprising six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal.
The development will also comprise Damac Maison Royale-serviced hotel residences, an apartment tower, an office tower, as well as two 30-storey residential towers overlooking the Dubai Canal and Safa Park.
"At Damac, we have developed a market leading brand firmly positioned in the luxury real estate sector," Sajwani said.
"Adding to this business model that is focused on returns and sales channel innovation, we have powerful differentiators that will support a continued pipeline of unique products with a range of properties and offers to address most sub-segments of our target customers."