Damac posts Dh3.7B revenue, looks forward to Dubai Expo

Damac Properties reported on Thursday a revenue of Dh3.7 billion and a net loss of Dh931 million for the first nine months of 2020.

The developer said booked sales for the period stood at Dh1.6 billion against Dh2.4 billion for the similar period last year.

Net loss for the period was Dh931 million, compared to Dh133 million for the same 2019 period. Gross profits stood at Dh828 million compared to Dh838 million a year ago. Gross profit margin declined to 22.7 per cent compare tot the nine-month period’s 30.3 per cent last year. Total assets stood at Dh21.8 billion compared to Dh23.8 billion as of December 31, 2019.

“The global outbreak of Covid-19 and subsequent lockdowns and travel restrictions adversely impacted performance and profitability. Profit continues to be adversely impacted due to provisions created in light of prevalent market conditions,” the developer said in a statement.

“Covid-19 has upset the balance sheets for many companies, which industry leaders have been very vocal and transparent about and while many analysts are forecasting a U-shaped recovery, we believe it may be some time before we see an upward recovery,” Hussain Sajwani, chairman of Damac Properties.

“Damac’s strong balance sheet has allowed it to absorb much of the market shock and we are optimistic that Dubai Expo next year will reap positive rewards for the real estate industry as sales and transactions will increase, offsetting the dip in the market due to Covid-19.”

Gross debt stood at Dh3.3 billion, cash and bank balances stood at Dh4.6 billion and development properties stood at Dh8.5 billion as on September 30, 2020. Shareholders’ equity stood at Dh13.1 billion while the company also saw gross debt reduction by Dh500 million.

Damac delivered 1,870 units in first nine months of the year in Akoya and Business Bay developments. During the year, Damac also reached the milestone of crossing 30,000 unit deliveries since inception.

— issacjohn@khaleejtimes.com