DAMAC Properties Dubai reports net profit of AED 1.05 billion in first quarter of 2016

DAMAC Properties Dubai Co. PJSC (DFM: DAMAC) (“DAMAC” or the "Company"), a leading developer of high-end property in the Middle East, announces results for the three months ending 31 March 2016. 

During the first three months of 2016, DAMAC recorded revenues of AED 1.62 billion. Gross Profit margin stood at 61%. Net profit for the reporting period stood at AED 1.05 billion, a drop of 15% compared to Q1 2015. 

Cash and Bank Balances stood at AED 9.42 billion whilst Development Properties was recorded at AED 9.42 billion, as at 31 March 2016. 

Net cash generated from operating activities: AED 241 million and the three months EPS of AED 0.17 per share. 

Consistent with guidance, it is anticipated that circa 2,700 to 3,000 units will be delivered across the portfolio in 2016. In the first quarter, 306 units were delivered in the DAMAC Maison Royale The Distinction project in Business Bay. 

During the reporting period, booked sales reached AED 2 billion, in line with Q4 2015, and 5% growth from the lows of Q3 2015, which shows continuous good interest in our products and the Dubai market. 

Hussain Sajwani, Chairman of DAMAC, commented: 

“The Dubai market is defying the skeptics. The levels of interest, activity, transaction values and volumes are solid. 

In line with the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, new product launches across the market are garnering global attention and further consolidating Dubai’s position as a global metropolis. 

Our own contribution to this landscape AYKON City is adding to our portfolio of projects offering exceptional luxury living experiences and sound investment opportunities to the international investment community. 

We believe Dubai is well set for continued growth, and we expect the city will consistently outperform more established metropolitan centers around the world. This outperformance is underpinned by a stringent and efficient regulatory framework which supports the Government’s vision to create a sustainable city which enhances the experience for those living, working and visiting Dubai.” 

Expansion of product range 

DAMAC continued to bring new products to market with the introduction of AYKON City, a four-million-square-foot development comprised of six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal. 

AYKON City is a new landmark at the heart of Dubai’s exciting landscape and prime area on Sheikh Zayed Road, at the intersection of Safa Park, and introduces the first all-suite AYKON Hotel with “AYKON Dare,” an adrenaline fuelled tourist attraction. 

This city within a city will also comprise a DAMAC Maison Royale serviced hotel residences, an apartment tower, an office tower, as well as two ultra-premium and exclusive 30-storey residential towers overlooking the Dubai Canal and Safa Park. 

Sajwani concluded: “At DAMAC, we have developed a market leading brand 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. 

We remain very positive on the future of the real estate sector in Dubai, and expect very healthy progress as further infrastructure investment leads developments through 2020.”