DAMAC reports net loss of $10m, as revenues drop to $1.2bn in 2019
Hussain Sajwani: We have selectively launched fewer projects in softer market conditions to avoid adding new commitments
Dubai Financial Market-listed (DFM) real estate developer DAMAC Properties, which is led by chairman Hussain Sajwani, has reported a net loss of $10m (AED36.8m) for the year ended December 2019, with revenues having plummeted by 41.7% to $1.2bn (AED4.4bn) in the same period compared to $1.7bn (AED6.1bn) in 2018.
In a stock market missive, the developer revealed that total assets for the same period stood at $6.5bn (AED23.8bn) having decreased by 6.2% from $6.9bn (AED25.2bn) in the year before. Meanwhile, shareholders’ equity stood at $3.8bn (AED14bn) compared to $3.9bn (AED14.1bn).
DAMAC Properties, which topped out Tower A of Golf Vista at DAMAC Hills in December 2019, posted booked sales of $844m (AED3.1bn) in 2019. The developer delivered 4,700 units in the same period.
Commenting on the financial results, Sajwani said that the developer has “selectively launched fewer projects in softer market conditions to avoid adding new commitments” adding that it is focusing on selling the inventory that is either completed or is nearing completion.
The developer said in the missive that it focused on deliveries and execution of projects within its construction pipeline in 2019. The same year DAMAC also made first deliveries in the master development AKOYA.
“In Dubai, our primary market, we maintained our focus on completing and handing over units in our development pipeline,” Sajwani added.
“Cash and liquidity management remains of paramount importance for DAMAC given the cyclical nature of the industry we operate in, DAMAC has historically paid for its land and debts commitments on or ahead of schedule.”
The chairman also said that the developer continued to maintain “a healthy financial and liquidity position” and reduced its gross debt by $435.6m (AED1.6bn) in last 18 months.
Sajwani lauded the “reform-oriented leadership” of the UAE, and said that government initiatives such as the issuance of long-term visas as well as the establishment of the Higher Committee for Real Estate remained the key driver for the sector’s growth.