Damac posts Dh1.9b in H1 revenue

Damac Properties on Wednesday reported total revenues of Dh.9 billion, with booked sales reaching Dh1.8 billion in the first half of 2019.
The Dubai-based developer said its gross profits for the same period stood at Dh502 million reflecting gross profit margins of 27 per cent. "Total assets stood at Dh24.7 billion compared to Dh25.2 billion as of December 31, 2018, while net profit stood at Dh82 million in the first half 2019."
Hussain Sajwani, chairman of Damac Properties, said that the first half witnessed events like the launch of the developer's latest project, Zada, in Business Bay and the first handover in Akoya. "We continue to focus on deliveries this year, completing and handing over projects that are in our development pipeline."
He said that the company made significant progress in its master communities, Damac Hills and Akoya, with both communities welcoming many more residents this year. "We remain financially robust, and with the UAE economy poised for growth in the coming years, we are looking forward to an upturn in the real estate sector."
In a statement filed on the Dubai Financial Market site, the company said its second quarter net profit dropped 87 per cent amid declining revenue to Dh50.57 million, down from Dh378.15 million in the same period last year while its revenue fell to Dh971.1 million, a drop of 45 per cent from Dh1.79 billion.
Damac said it has reduced its gross debt by Dh1.4 billion in the last 12 months. As of June 30, 2019, gross debt stood at Dh4.1 billion, cash and bank balances stood at Dh5.6 billion and development properties stood at Dh9.4 billion. Shareholders' equity stood at Dh14.2 billion.
The developer delivered 1,476 units in first half of the year. This also includes the first ever handover in Akoya, the company's largest master development, with nearly 315 units in the Claret cluster completed and in the process of being handed over to customers. Damac also completed two other projects in Dubai namely Ghalia and Tower 108.
- issacjohn@khaleejtimes.com