Real Estate

DAMAC Properties Dubai Co PJSC (DFM: DAMAC) ("DAMAC" or the "Company"), a leading developer of high-end home in the Middle East, announces results for year ended 31 December 2015.

Financial Highlights

Throughout full year 2015, DAMAC tape-recorded earnings of AED 8.54 billion ($2.32 billion), gross profit of AED5.07 billion ($1.38 billion).

DAMAC tape-recorded net profit for the year at AED 4.51 billion (c. $1.23 billion), a boost of 30 % compared with 2014.

During 2015, total possessions grew 25 % to AED 23.45 billion ($6.38 billion), Total equity had 87 % to AED9.83 billion ($2.68 billion). Gross debt stood at AED3.76 billion ($1.02 billion) as at 31 December 2015. Cash and bank balances stood at AED 9.50 billion ($2.59 billion).

DAMAC remains to maintain a healthy net cash position of AED 5.74 billion ($1.56 billion) and gross financial obligation to equity ratio stands at 0.38 as at 31 December 2015.

Functional Highlights

Booked Sales for the year stood at AED 9.06 billion ($2.47 billion). Location sold during the year was 8.12 mn sq ft, 3 % higher than 2014.

DAMAC has actually completed over 2,600 devices in 2015, consisting of units in AKOYA by DAMAC, the first master plan development around a Golf course in Dubai, thus showing capabilities as a master developer.

Other completions in AKOYA by DAMAC consist of 3 buildings in the G +7 structures completing 479 devices (Golf Panorama, Golf Horizon, and Golf Vista).

DAMAC also completed the first project in Qatar throughout the year with 512 systems in Doha. Other advancements finished throughout the year consisted of, Lakeside, Tenora and DAMAC Maison Upper Crest. The overseas conclusions are noteworthy as they demonstrate the transferability of skills and operational understand how into new markets.

The Company likewise remained to bring to market brand-new and innovative items including Vista Lux the central hub of the AKOYA Oxygen development, The Promenade a residential and serviced homes providing in AKOYA by DAMAC in addition to a variety of new expansions in both AKOYA and AKOYA OXYGEN.

On the Towers front, Merano in Business Bay and Paramount Hotel and Residences on Sheikh Zayed Road were presented.

The business likewise added a brand-new partner to the broadening stable of luxury brand associations with the launch of Bugatti Villas in AKOYA OXYGEN, the Company's very first automobile brand partnership.

Hussain Sajwani, Chairman of DAMAC, commented:

"The Dubai real estate market is at a consolidation point in the cycle and the fast growth experienced in 2012-2014 is now behind us. This market develops chances for well capitalized and experienced business like ourselves with a strong track record.

Regarding market belief, the oil cost dynamic is definitely an aspect, however one should constantly keep in mind that a falling oil rate produces as well as deteriorates wealth.

Decreasing the value of currencies plainly drive asset rates up in hard dollars while at the same time driving financiers to wish to secure parts of their wealth in the hard currency in worry of more devaluation.

Possibly most significantly 2015 ended with supply not surpassing 8,000 units for the Dubai market, a huge reduction on the preliminary 25,000 systems supply speculation.

We strongly think that the current environment is very different than the one we faced in 2008. Dubai, in regards to federal government, regulator, designers, providers of capital, both debt and equity and investors have actually learned a large amount. The underlying basic limo drivers that make Dubai an attractive location have not changed.

Importantly for the realty market, a high single digit rental yield, amongst the healthiest in any significant urban centers internationally, should remain to support financial investment demand. Ultimately, designers who have the capabilities to target healthy pockets of need, and who can offer a portfolio of items to satisfy stated need would fare better.

Looking ahead, we anticipate the market in Dubai in 2016 to show its durability against the background of the difficult economic environment. We see the structural scarcity of supply as the foundation of the market resilience. We expect the overall supply in Dubai to once more disappoint 10,000 new units in 2016 eventually driving the marketplace back into positive rates development area, perhaps to the 2nd half of the year or early 2017.

At DAMAC we continue to be concentrated on leveraging our competitive edge and think we have at our disposal a set of levers that will enable us to remain to post strong results in the year to come".

Currency exchange rate 1 USD=3.675 AED

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