DAMAC Properties Dubai reports net profit of AED 1.94 billion in first half of 2016
DAMAC Properties Dubai Co. PJSC (DFM: DAMAC) (DAMAC or the "Company"), a leading developer of high-end property in the Middle East, today announced the financial results for the six months ending 30 June 2016.
During the first six months of 2016, DAMAC recorded revenues of AED 3.37 billion. Gross profit margin stood at 59%. Net profit for the reporting period stood at AED 1.94 billion, a drop of 27% compared to H1 2015. Total assets increased to AED 23.51 billion at 30 June 2016 compared to AED 23.45 billion at 31 December 2015.
Cash and bank balances stood at AED 8.81 billion whilst development properties were recorded at AED 9.59 billion, as at 30 June 2016.
Net cash generated from operating activities totaled AED 386 million and the six months Earnings Per Share (EPS) of AED 0.32 per share.
With continued momentum in the Companys building program, the management maintains unit delivery guidance for full year 2016 in a range of 2,700 3,000 units. In the first half, 494 units were delivered in Dubai and Beirut.
During the reporting period, booked sales reached AED 3.63 billion, marginally below the previous three quarters run rate, due primarily to the full impact of Ramadan in this quarter. The higher transaction numbers and square footage sales show continued stability in demand for DAMACs products and the Dubai market. With these results and a stronger than seasonal start to Q3 2016, the management reiterated guidance for full year sales to be greater than AED 7 billion.
Hussain Sajwani, Chairman of DAMAC Properties, commented:
The Dubai market remains solid. The levels of interest in our new product launches and existing portfolio are healthy.
In line with the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, Dubai is reinforcing its position as a leading metropolitan center attracting businesses and individual investors from the four corners of the globe.
In the first half of 2016, DAMAC added AYKON City to its portfolio of standout projects, a landmark in freehold developments in the most sought after location on Sheikh Zayed Road.
Furthermore, DAMAC continues to introduce innovative concepts with our master developments; AKOYA by DAMAC and AKOYA Oxygen.
We believe that Dubai is well positioned for continued growth, and we expect the city to consistently outperform more established metropolitan centers around the world. This outperformance is underpinned by a stringent and efficient regulatory framework stemming from the Governments vision to create a sustainable city which enhances the experience of those living, working and visiting Dubai.
Expansion of product range
Most recently, DAMAC Properties continued to bring new products to market with the introduction of AYKON City, a four-million-square-foot development comprising six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal.
DAMAC also announced the launch of the much-awaited 60-storey residential tower within AYKON City following the first quarter launch of the hotel and serviced apartments tower within the same development. The residential tower represents one of the few opportunities to own a luxury residence overlooking the Dubai Canal.
Furthermore, following a sold-out phase one, DAMAC has recently announced a limited release in Ghalia during the holy month of Ramadan to target the growing halal tourism sector. Ghalia offers the first certified Sharia-compliant serviced hotel apartments, with construction already underway, and will be operated by DAMAC Hotels & Resorts, the hospitality arm of DAMAC Properties. The 38-storey tower in Jumeirah Village will comprise 742 keys, with furnished units ranging from studio, one-, two- and three-bedroom apartments.
Also, in the heart of the serene AKOYA Oxygen master development, DAMAC has launched an exclusive collection of hotel spa villas. The hotel spa villas form a community designed to offer the tranquility of a retreat at home, and are set within the lush green environment of AKOYA Oxygen in Dubai. The limited edition hotel spa villas come with a private garden spa as standard, providing a choice of Jacuzzi or sauna, and are fully furnished, in addition to being serviced, for the ultimate experience in luxury.
Sajwani concluded: At DAMAC, we have established ourselves as a market leader firmly positioned in the luxury real estate sector. Adding to this business model that is focused on returns and sales channel innovation, we have powerful differentiators that will support a continued pipeline of unique products with a range of properties and offers to address most sub-segments of our target customers.
With the first half of 2016 behind us, we are more optimistic today about the business and expect to end 2016 in a more positive position.
