DAMAC posts AED1.05 billion net profit in Q1

JEDDAH — Damac Properties Dubai Co, a leading developer of high-end property in the Middle East, recorded revenues of AED1.62 billion in three months ending March 31, 2016. Gross profit margin stood at 61%. Net profit for the reporting period stood at AED1.05 billion, a drop of 15% compared to Q1 2015. Cash and bank balances stood at AED9.42 billion while development properties were recorded at AED9.42 billion, as of March 31, 2016. Net cash generated from operating activities: AED241 million and the three months EPS of AED0.17 per share. Consistent with guidance, it is anticipated that circa 2,700 to 3,000 units will be delivered across the portfolio in 2016. In the first quarter, 306 units were delivered in the Damac Maison Royale The Distinction project in Business Bay. During the reporting period, booked sales reached AED2 billion, in line with Q4 2015, and 5% growth from the lows of Q3 2015, which shows continuous good interest in our products and the Dubai market. Hussain Sajwani, Chairman of Damac, said: “The Dubai market is defying the skeptics. The levels of interest, activity, transaction values and volumes are solid. Our own contribution to this landscape Aykon City is adding to our portfolio of projects offering exceptional luxury living experiences and sound investment opportunities to the international investment community.” He added “we believe Dubai is well set for continued growth, and we expect the city will consistently outperform more established metropolitan centers around the world. This outperformance is underpinned by a stringent and efficient regulatory framework which supports the Government’s vision to create a sustainable city which enhances the experience for those living, working and visiting Dubai.” Damac continued to bring new products to market with the introduction of Aykon City, a four-million-square-foot development comprised of six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal. Aykon City is a new landmark at the heart of Dubai’s exciting landscape and prime area on Sheikh Zayed Road, at the intersection of Safa Park, and introduces the first all-suite Aykon Hotel with “Aykon Dare,” an adrenaline fuelled tourist attraction. This city within a city will also comprise a Damac Maison Royale serviced hotel residences, an apartment tower, an office tower, as well as two ultra-premium and exclusive 30-storey residential towers overlooking the Dubai Canal and Safa Park. — SG