Damac to issue Dh1.51b cash dividend
dubai — Damac Properties recorded on Tuesday a net profit of Dh3.69 billion for the financial year 2016, and said medium to long-term outlook for the property market remains positive.
The company said in a statement to Dubai Financial Market that its shareholders had approved the distribution of a cash dividend of 25 fils per share amounting to Dh1.51 billion for 2016. That compares with 15 fils per share for the previous year.
Damac’s revenues for the year soared to Dh7.16 billion with gross profit margins standing at 56 per cent while total assets rose five per cent to Dh24.63 billion from Dh23.45 billion in 2015.
The developer’s statement came days ahead its Trump-branded golf complex opening on February 18 at which US President Donald Trump’s sons Donald Trump Jr. and Eric Trump are expected to take part.
According to an invitation sent to guests by Damac, Trump’s sons will be the guests of honour for the opening of the Trump International Golf Club Dubai.
For the fourth quarter, Damac reported a 1.3 per cent rise in net profit to Dh854.6 million, up from Dh844 million posted for the yearago period. Full-year 2016 net profit was Dh3.69 billion, down from Dh4.51 billion in 2015.
Cash and bank balances stood at Dh8.32 billion; development properties grew 12 per cent to Dh10.25 billion over the year and total equity grew 28 per cent to Dh12.62 billion from Dh9.83 billion in 2015, net of dividend.
In 2016, Damac completed over 1,600 units at Damac Hills (previously Akoya) development. Total deliveries for 2016 were recorded at over 2,400 units.
The company said booked sales reached Dh7.05 billion for the full year, while it surged to Dh1.71 billion for the fourth quarter alone, thus showing a stable market.
“The Dubai real estate market 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,” Hussain Sajwani, chairman of Damac, said.
“Our medium to long-term outlook remains positive, and we are well-positioned to accommodate and navigate these conditions,” said Sajwani.
In 2016, the luxury property developer launched a series of innovative products at its 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.
Damac had in 2016 launched a range of residential and hospitality projects within Aykon City, a four million sq ft development comprising six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal.
Sajwani said Damac’s momentum on handovers was significantly amplified in the fourth quarter, delivering over 1,100 units in the quarter alone, and bringing the total units of deliveries to more than 2,400 for the year.
He said 2016 was a year of market stabilisation and Damac would continue to innovate on its products to meet the demands of a wider audience of customers.
In 2016, 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, he said.
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.
— issacjohn@khaleejtimes.com
5% jump in total assets to Dh24.63 billion