Damac reports net profit of $1bn in 2016
Damac completed more than 1,600 units in 2016 in Damac Hills (Akoya previously) development. Total deliveries for 2016 were recorded at more than 2,400 units
Dubai-based property developer, Damac Properties, has registered a revenue of $1.96bn (AED7.16bn) with gross profit margins at 56% in 2016.
Net profit for the reporting period stood at $1bn (AED3.69bn), achieving net margins of 52%. Total assets increased 5% to $6.7bn (AED24.63bn) at year end 2016 compared to $6.33bn (AED23.45bn) in 2015.
As of 31 December, 2016, Damac’s cash and bank balances stood at $2.27bn (AED8.32bn); development properties grew 12% to $2.8bn (AED10.25bn) over the year, and total equity grew 28% to $3.44bn (AED12.62bn) from $6.68bn (AED9.83bn) in 2015, net of dividend.
Damac completed more than 1,600 units in 2016 in Damac Hills (Akoya previously) development. Total deliveries for 2016 were recorded at more than 2,400 units.
During 2016, booked sales reached $1.92bn (AED7.05bn). The fourth quarter of 2016 recorded $470m (AED1.71bn), showing a stable market.
Hussain Sajwani, chairman of Damac, said: “The Dubai real estate market in 2016 had stabilised over 2015, with no major fluctuations in prices.
“There is demand for quality real estate but with the challenging market conditions we are operating in, what has changed is customers are seeking better value.
Our medium to long term outlook remains positive, and we are well-positioned to accommodate and navigate these conditions.”
Damac handed over more than 1,100 units in the fourth quarter of 2016, bringing the total units delivered to more than 2,400 for the year.
More than 600 hospitality units delivered in Damac Maison Royale The Distinction and Damac Maison Bay’s Edge, 2016 was the year of the first deliveries of villas and apartments in golf community Damac Hills.
Sajwani concluded: “2016 was a year of market stabilisation and we will continue to innovate on our products to meet the demands of a wider audience of customers.
“Our business model is such that it supports a steady pipeline of luxury properties being offered with our main differentiator being a range of premium locations and value that we bring to investors.”