DAMAC Properties records AED3.69bn net profit in 2016

Dubai / Emirates Business

DAMAC Properties Dubai, a leading property developer in the Middle East, on Tuesday announced the financial results for the full year 2016.
During 2016, DAMAC recorded revenues of AED7.16 billion, with gross profit margins at 56%. Net profit for the reporting period stood at AED3.69 billion, achieving net margins of 52%. Total assets increased 5% to AED24.63 billion at year end 2016 compared to AED23.45 billion in 2015.
As of December 31, 2016, cash and bank balances stood at AED8.32 billion; development properties grew 12% to AED10.25 billion over the year and total equity grew 28% to AED12.62 billion from AED9.83 billion in 2015, net of dividend.
Cash dividend of AED0.25 per share amounting to AED1,512.5 million is proposed by the Company’s Board of Directors subject to approval of the shareholders in the forthcoming
annual general assembly.
Earnings Per Share (EPS) for 2016 amounted to AED 0.61 per share.
DAMAC completed over 1,600 units in 2016 in DAMAC Hills (AKOYA previously) development. Total deliveries for 2016 were recorded at over 2,400 units. During 2016, booked sales reached AED 7.05 billion. 4Q 2016 recorded AED 1.71 billion, showing a stable market.
Hussain Sajwani, Chairman of DAMAC, commented: “The Dubai real estate market in 2016 had stabilised over 2015, with no major fluctuations in prices. There is demand for quality real estate but with the challenging market conditions we are operating in, what has changed is customers are seeking better value. Our medium to long term outlook remains positive, and we are well-positioned to accommodate and navigate these conditions.
During the year, we launched a series of innovative products in our golf community AKOYA Oxygen that were priced to attract a wider audience, including first-time buyers and millennials, looking for properties in premium locations at an attainable price and with favourable payment terms. These investors were seeking to either diversify their current investment portfolio or were end-users with lifestyle aspirations.
Due to the efforts of our visionary leadership, Dubai is consistently outperforming other regional as well as international markets. With a heavy emphasis on building world-class infrastructure that will serve the future needs of the emirate, and attracting investors and businesses to a hub that is easy to do business in, Dubai continues to be an attractive proposition for visitors and residents living and working in the city.” During the year, DAMAC launched a range of residential and hospitality projects within AYKON City, a four-million-square-foot development comprising six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal. Investors had the opportunity to purchase hotel rooms and luxury serviced apartments at this strategic location and tap into the potential that the tourism industry presents.
Hospitality units in a number of other locations including Dubai South were launched to meet the anticipated demand from the upcoming World Expo 2020. DAMAC Maison de Ville Tenora, a luxury serviced hotel apartment tower strategically located in close proximity to Al Maktoum
International Airport, was the first
ever project in Dubai South to be
completed and handed over.
In Q4 of 2016, DAMAC Properties’ momentum on deliveries was significantly amplified, delivering more than 1,100 units in the quarter alone, and bringing the total units delivered to more than 2,400 for the year. In addition to more than 600 hospitality units delivered in DAMAC Maison Royale The Distinction and DAMAC Maison Bay’s Edge, 2016 was the year of the first deliveries of villas and apartments in golf community DAMAC Hills (AKOYA previously). The golf course of Trump International Golf Club was completed before year end and the clubhouse was undergoing last building finishes in preparation for its opening.
Sajwani concluded: “2016 was a year of market stabilisation and we will continue to innovate on our products to meet the demands of a wider audience of customers. Our business model is such that it supports a steady pipeline of luxury properties being offered with our main differentiator being a range of premium locations and value that we bring to investors.”