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Damac Properties profit plunges 45% to Dh484 million in the first quarter of 2018

Damac Properties’ net profit plunged 45 percent to Dh484 million in the first quarter of 2018, down from Dh880.4 million dirhams ($239.7 million) recorded in the corresponding period in 2017 and marginally higher than Dh459 million reported in the fourth quarter 2017.

The developer reported total revenue of Dh1.9 billion, with booked sales reported at Dh1.6 billion, largely in line with Dh1.5 billion recorded in Q4 2017.

By the end of the quarter, Damac delivered 648 units at its Damac Heights tower, in Dubai Marina, while gross profits stood at Dh761 million reflecting profit margins of 40 percent.

Total assets increased by 4.6 percent to Dh26.5 billion compared to Dh25.3 billion as at December 2017.

As of 31 March 2018, cash and bank balances stood at Dh7.7 billion while development properties stood at Dh9.6 billion. Total equity stood at Dh14.3 billion which is an increase of 3.5 percent from year-end 2017, and earnings per share (EPS) for the quarter amounted to Dh0.08 per share.

“Dubai’s property market continues to attract investors from around the world, thanks to Dubai’s visionary leadership and the emirates’ global appeal as one of the safest, happiest and fastest growing cities in the world. While local and international demand for our projects remains strong,” said Hussain Sajwani, Chairman of Damac Properties.

“As per the vision of Dubai’s Ruler, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Dubai continues to expand on its proposition as a leading destination for tourism, business and investment, with ongoing infrastructure development leading up to DUBAI EXPO 2020.  Dubai remains one of the world’s most attractive places to live and work, which ultimately delivers long-term benefit to the real estate sector as a whole,” said Sajwani. “We thank our shareholders, employees and partners who continue to be the catalyst for the Company’s success.”

Damac Properties, established in 2002, has a strong footprint across the Middle East with projects in the UAE, Saudi Arabia, Qatar, Jordan, Lebanon, Oman and the United Kingdom.

As of 31st December 2017, Damac Properties has delivered over 20,230 homes. The company has a development portfolio of over 44,000 units at various stages of progress and planning, comprising more than 13,000 hotel rooms, serviced apartments and hotel villas.