DAMAC net profit drops 27% in H1

DAMAC Properties Dubai Co. PJSC, a leading developer of high-end property in the Middle East, announced Sunday the financial results for the six months ending June 30, 2016 which revealed revenues of AED3.37 billion.
Gross profit margin stood at 59%. Net profit for the reporting period stood at AED1.94 billion, a drop of 27% compared to H1 2015. Total assets increased to AED23.51 billion on June 30, 2016 compared to AED23.45 billion on Dec. 31, 2015.

Cash and bank balances stood at AED8.81 billion while development properties were recorded at AED9.59 billion.
Net cash generated from operating activities totaled AED386 million and the six months earnings per share (EPS) of AED0.32 per share.
With continued momentum in the company’s 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 DAMAC’s 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 AED7 billion.
Hussain Sajwani, Chairman of DAMAC Properties, said: “The Dubai market remains solid. The levels of interest in our new product launches and existing portfolio are healthy.”
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.
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.