Damac revenue up 4% to Dh7.5b for 2017

Damac Properties reported total revenue of Dh7.5 billion for the year ended 2017, a 4 per cent increase over 2016, and net profit of Dh2.8 billion. The luxury developer also announced it has delivered 20,236 units as of December 31, 2017.
Gross profit for the year was Dh3.6 billion, 9 per cent lower than 2016 as gross margins declined to 48.8 per cent versus 55.9 per cent in 2016. Margin decline was mainly due to international project deliveries during the year, UAE projects' margin remains healthy at 52.1 per cent.
Damac's booked sales stood at Dh7.5 billion versus Dh7 billion in 2016. The company completed 2,304 units during the year, bringing a total of 20,236 unit deliveries to date.
Total cash and bank balances stood at Dh7.5 billion. Gross debt stood at Dh4.8 billion. Earnings per share stood at Dh0.46 for 2017. The board proposed a dividend of Dh1.5 billion (Dh0.25/share) for 2017 which will be paid upon approval by the shareholders during the general assembly.
"Dubai's property market continues to show growth as increasing demand returns to the market, and this is reflected in our booked sales. Our medium to long-term outlook remains positive, with continued local demand as well and stronger interest by international investors. Our major projects in Dubai including Damac Hills, Akoya Oxygen and Aykon City continue to appeal to expats and international investors alike, while our diverse product portfolio continues to attract a wide variety of buyers for our off-plan and ready properties," said Hussain Sajwani, chairman of Damac Properties.
During 2017, Damac delivered 2,304 units comprising 1,452 units in Damac Hills and 852 units at its international developments, including its two-tower project in Saudi Arabia (Damac Esclusiva - 454 units) as well as its first project in Jordan (The Heights - 398 units) comprising three towers.
Damac's residential leasing at Damac Hills comprised 328 units and is 97 per cent leased out. Damac also commenced operations of its 305-key Damac Maison Royale The Distinction in Downtown Dubai, bringing the number of hotels in operation to six.
Construction continues on over 6,500 villas, apartments at Akoya Oxygen, while its golf course and community infrastructure is shaping up.
Highlights in 2017 include the inclusion of Damac's stock to the Morgan Stanley Capital International (MSCI) UAE index, which measures the performance of large and mid-cap segments of the UAE market.
Damac conducted 524 roadshows across 107 cities in 42 countries in 2017.
"As Dubai continues to attract tourists from all over the world, visitors are coming and seeing business potential that Dubai offers, and are choosing to stay." said Sajwani. "Dubai's property sector is feeling the positive effects of the emirate's appeal and growing sophistication on the world stage. This is evident from the growing real estate sales transactions at the Dubai Land Department and we are confident of the growth prospects for the sector going forward," added Sajwani. - deepthi@khaleejtimes.com