DAMAC Properties Dubai reports net profit of AED 2.84 billion in the first 9 months of 2016

DAMAC Properties Dubai Co. PJSC (DFM: DAMAC) (“DAMAC” or the "Company"), a leading developer of high-end property in the Middle East, today announced the financial results for the nine months ending 30 September 2016.

During the first nine months of 2016, DAMAC recorded revenues of AED 5.12 billion. Gross profit margin stood at 57%. Net profit for the reporting period stood at AED 2.84 billion, a drop of 23% compared to 9M 2015. Total assets increased to AED 24.34 billion at 30 September 2016 compared to AED 23.45 billion at 31 December 2015.

Cash and bank balances stood at AED 8.90 billion, whilst development properties were recorded at AED 9.79 billion, as at 30 September 2016.

Net cash generated from operating activities totaled AED 537 million and the nine months Earnings Per Share (EPS) amounted to AED 0.47 per share.

With an accelerated delivery momentum in its Dubai core market, the Company reports the delivery of over 800 units in 3Q 2016 in AKOYA by DAMAC development, bringing the total deliveries for 9M 2016 to over 1,300 units. Although some international projects are facing unforeseen delays, management still expects to meet the lower end of the guidance range of 2,700 to 3,000 units from incremental deliveries in Dubai.

During the reporting period, booked sales reached AED 5.3 billion. 3Q 2016 recorded AED1.7 billion, showing 5% sequential growth versus 2Q 2016 and marginally below 3Q 2015. With these results and the seasonally strong 4Q 2016, the management reiterated guidance for full year sales to be greater than AED 7 billion.

Hussain Sajwani, Chairman of DAMAC Properties, commented:

“The Dubai market remains resilient. The levels of interest in our new product launches and existing portfolio are healthy.

In line with the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, Dubai is reinforcing its position as a leading metropolitan center attracting businesses and individual investors from the four corners of the globe.

In the first nine months 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.

The market is definitely challenging, investors today are seeking better value. However, with a medium to long term view, we believe that Dubai is well positioned for continued growth, and we expect the city to consistently outperform more established metropolitan centers around the world. This outperformance is underpinned by ambitious infrastructure investments, and a stringent and efficient regulatory framework stemming from the Government’s vision to create a sustainable city which enhances the experience of those living, working and visiting Dubai.”

Expansion of product range

In the third quarter of 2016, DAMAC Properties continued to bring new products to market. AYKON City remains the major launch of the year, a four-million-square-foot development comprising six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal.

At Cityscape 2016, DAMAC announced the launch of the much-awaited 80-storey AYKON Hotel and hotel apartment tower within AYKON City, following the earlier launches of the hotel and serviced apartments tower operating under the DAMAC Maison brand and the Residences tower within the same development. The residential tower represents one of the few opportunities to own a luxury residence overlooking the Dubai Canal.

Furthermore, in the heart of the serene AKOYA Oxygen master development, DAMAC has launched an array of new products. The Beach at Navitas Hotel & Residences, an inspiring new collection of golf and beach-style living apartments designed for the new generation of millennials. Also AKOYA Imagine villas and plots, a vibrant community surrounded by the lush greens and fairways of the international golf course. At AKOYA by DAMAC, XV villas, a revolutionary and premium design offering not only exclusivity but also a new to market “inverted” floor plans that provide elevated views across the lake and golf course. AKOYA Cuatro villas with a four bedroom offering also add further options to buyers seeking investment in this exceptional development. In addition DAMAC launched tower 108 in Jumeirah Village Circle, a collection of serviced hotel apartments to be managed under the DAMAC Maison de Ville brand and offering attractive yields for investors seeking exposure to the growing Dubai hospitality sector.

Sajwani concluded: “2016 will be remembered not only as the year of market turmoil and macroeconomic pressures, but importantly for us the year when the community at AKOYA by DAMAC became a reality with the delivery of 1,350 units. A testament to our ambition, capabilities and execution. At DAMAC, we have established ourselves as a market leader 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.”