Damac sees uptick in Q3 revenue

Dubai-listed Damac Properties net profit for the third-quarter fell 20 per cent to Dh719.3 million as cost of sales jumped nearly 70 per cent to Dh1.33 billion from Dh788.5 million for the same quarter last year.
Its quarterly operating profit also fell from Dh909.9 million in Q3 2016 to Dh741.8 million while revenues increased from Dh1.74 billion to Dh2.29 billion. The earning per share slid to Dh0.12 from Dh0.15.
The developer's 9-month profits dropped 19 per cent to Dh2.3 billion as compared to Dh2.84 billion for the same period last year. The revenues also grew to Dh5.8 billion this year as against Dh5.12 billion for the corresponding period last year, registering an increase of 13.2 per cent. While gross profit was nearly static at Dh2.9 billion.
"Dubai's property market has been steadily solidifying in 2017, with increasing sales transactions and robust fundamentals, and our medium to long term outlook remains positive," said Hussain Sajwani, chairman, Damac Properties.
"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 recorded at Dubai Land Department and we are confident of the growth prospects for the sector going forward," Sajwani noted.
The company's 9-month earnings per share fell to Dh0.38 from Dh0.47. The company's booked sales totalled Dh6 billion, an increase of 13 per cent, delivering a total of 1,923 units - 1,071 in Damac Hills Dubai and 852 units internationally.
Its shares fell in the morning after the announcement but recovered later to close unchanged at Dh3.95 on Wednesday.
The developer's total cash and bank balances stood at Dh7.9 billion while gross debt was Dh5 billion as at 30 September 2017.
Niall McLoughlin, senior vice-president for corporate communication and marketing at Damac, told Khaleej Times in an interview with earlier that the developer has Dh60 billion worth of projects under different phases of development and is eyeing international expansion as part of its growth strategy with focus on North America and European markets.
The group, according to McLoughlin, will deliver over 2,700 units during 2017.
As of 30th September 2017, Damac had delivered approximately 19,855 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.
-waheedabbas@khaleejtimes.com