Damac expects to maintain 25% dividend for 2016

The property developer’s profits fell 23% to $773.23m in the nine months to September and saw profit declines in the first three quarters of last year

Representational image only.
Representational image only.

Dubai-based Damac Properties is expecting to maintain a 25% cash dividend policy for 2016, its chief financial officer said on Sunday.

The property developer’s profits fell 23% to $773.23m in the nine months to September and saw profit declines in the first three quarters of last year, Reuters reported.

Though Damac announced a minimum 25% cash dividend target in 2014 for the following two years and again in 2015, it has yet to announce a dividend for 2016.

Adil Taqi, CFO, Damac Properties said: "There is no reason to speculate we will not adhere to this."

He added that it would be unlikely to be more than the target and would require regulatory approval.

With Dubai’s property market softening amid low oil prices and lower consumer confidence, Taqi said that he expects the market to move “sideways” in 2017 in comparison to the previous year, doubting huge growth.

Damac expects Dubai's market to rebound however in the "second or third quarter of 2019" in the lead up to the EXPO 2020 event.

The property developer is also considering its options for refinancing debt maturing over the next two years, with a $100m sukuk in March, of which it has already paid off $25m, as well as a $650m sukuk in 2019.
 

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