Damac's YoY net profit for 9 months ending September 2019 drops 99%
Revenues for nine months also noted a 46% YoY drop to $762m as the developer recorded delivery of 3,072 units in the period
Dubai Financial Market-listed (DFM) real estate developer, Damac Properties has reported a 99% decline in its year-on-year net profit for the first nine months of 2019 ending on September, with the company having recorded $36.1m (AED132.6m) compared to $296.7m (AED1.1bn) in the same period in 2018.
In a stock market filing the developer revealed that total revenue for the first nine months of 2019 stood at $762.3m (AED2.8bn) compared to $1.4bn (AED5.2bn), dropping by 46%, while booked sales for the period reached $653.4m (AED2.4bn).
As of September 2019, Damac’s gross debt stood at $1.1bn (AED4bn); cash and bank balances stood at $1.4bn (AED5bn); and development properties stood at $2.7bn (AED10bn), while shareholders’ equity was $3.9bn (AED14.2bn) as on 30 September 2019.
The developer, which recently acquired two plots in Dubai's Al Sufouh and Business Bay neighbourhoods from Dico Properties and Soor Foodstuff Co for $77.5m (AED285m), delivered 3,072 units in first nine of 2019. Damac handed over units within Akoya — its largest master development — and noted completion on projects including Prive by Damac, Ghalia, and Tower 88 in Dubai.
Speaking on the developer’s financial results, chairman of Damac Properties, Hussain Sajwani said: “As we navigate the existing market conditions, we continue to focus on delivering projects that are already in the development pipeline, and we are well on our way to achieving our target of 4,000 unit deliveries by the end of 2019.”
The year 2019 saw net profit at Damac in a downward position, with the numbers dropping YoY by 94% in Q1 and 91% in Q2, compared to the same period in 2018.