18/10/2017 09:40 AST
DAMAC Properties Dubai Co. PJSC (DFM: DAMAC) ("DAMAC" or the "Company"), a leading property developer in the Middle East, today announced its first-nine months 2017 financial results, reporting total revenue of AED 5.8 billion and net profit of AED 2.3 billion.
Gross Profit for the nine month period stood at AED 2.9 billion representing gross margins (including international projects) of 49.3% vs. 57.3% in 9M 2016. We continue to witness increase in volumes and UAE business margins remain healthy at 54.1%.
As of 30 September 5097, DAMAC's booked sales for 9M stood at AED 6 billion. We completed a total of 1,923 units comprising 1,071 units in DAMAC Hills (Dubai), 454 units in DAMAC Esclusiva (Riyadh) and 398 units in The Heights (Amman) during the nine months. Total cash and bank balances stood at AED 7.9 billion, while earnings per share for 9M stood at AED 0.38. Gross debt stood at AED 5.0 billion as at 30 September 2017.
"Dubai's property market has been steadily solidifying in 2017, with increasing sales transactions and robust fundamentals, and our medium to long term outlook remains positive. We have a strong value proposition and continue to appeal to a broader spectrum of buyers with a range of products at attractive price points," said Hussain Sajwani, Chairman of DAMAC Properties. "We remain dynamic and our product innovation has contributed to sustained demand for a number of our projects including AYKON City, DAMAC Hills and AKOYA Oxygen."
DAMAC expanded its villa offering at AKOYA Oxygen, its second master community in Dubailand, introducing new villa types designed for buyers seeking value in an integrated golf community. During 3Q 2017, DAMAC forged an association with the Roberto Cavalli Group and launched 'Just Cavalli' villas, to feature the designer's distinctive signature style in villas at AKOYA Oxygen.
During the 3rd quarter of 2017, DAMAC delivered a total of 852 units in its international developments, including its two-tower project in Saudi Arabia (DAMAC Esclusiva) in addition to its first project in Jordan (The Heights) comprising three towers.
During 3Q 2017, DAMAC significantly ramped up its leasing activities, with a rental portfolio comprised of apartment units at DAMAC Hills, 95% of which have been leased out to date. DAMAC also commenced operations at its latest hotel property, the 305-key DAMAC Maison Royale The Distinction, in Downtown Dubai, bringing the number of hotels in operation to six, with 1,784 keys.
Construction continues on circa 6,300 villas at AKOYA Oxygen, and the 18-hole championship golf course continues to take shape. The community's amenities, including wellbeing facilities and retail outlets, in addition to hospitality and food and beverage elements, are in various stages of planning and progress.
"We thank the visionary leadership of Dubai and the Government of Dubai for their emphasis on innovation and relentless pursuit in placing the emirate amongst the most competitive cities in the world. Due to their efforts in securing an ideal environment for all, residents are attracted to live and work here, increasingly more businesses are setting up in the emirate, and travellers from all over the world are choosing Dubai as a destination," said Sajwani. "Dubai's property sector is feeling the positive effects of the emirate's appeal and growing sophistication on the world stage. This is evident from the growing real estate sales transactions at Dubai Land Department and we are confident of the growth prospects for the sector going forward."
"We would like to thank all of our stakeholders who contributed to our success in 2017, including employees and business partners whose determination and commitment have been key to our achievements," added Sajwani.
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