KHALEEJ TIMES, Wednesday, Feb 12, 2020 | Jamadi Al Thani 18, 1441
Damac posts first loss since 2010
Leading Dubai-based developer Damac Properties, reported on Tuesday a net loss
of Dh36.9 million in 2019 - its first annual loss since 2010.
Damac, which owns the only Trump-brand golf course in the Middle East, posted a
fourth quarter loss of Dh169.5 million compared with a Dh57 million profit in
the corresponding 2018 period, according to calculations by analysts. In 2018,
the developer made a net profit of Dh1.15 billion.
Damac's full-year revenue fell 28.2 per cent to Dh4.4 billion as the firm said
it focused on handing over units to customers and developing existing projects.
In a statement, the developer said it had booked sales of Dh3.1 billion and
delivered close to 4,700 units. Shareholders' equity stands at Dh14.1 billion
while the firm's assets were valued at Dh23.8 billion. The company said it
focused throughout 2019 on deliveries and execution of projects in the
construction pipeline. The year marked the first deliveries in the master
development Akoya alongside other projects in Dubai.
Hussain Sajwani, Chairman, Damac Properties, said in Dubai, the group's primary
market, it maintained focus on completing and handing over units in the
"We have selectively launched fewer projects in softer market conditions to
avoid adding new commitments and focus on selling completed and near completion
inventory," said Sajwani, who last year called for a freeze on new residential
projects for up to two years by developers in Dubai to facilitate a recovery in
Dubai's troubled market.
Sajwani said Damac's cash and liquidity management remains of paramount
importance for Damac, given the cyclical nature of the industry it operates in.
"We have historically paid for its land and debts commitments on or ahead of
schedule. Damac continues to maintain a healthy financial and liquidity position
and has reduced gross debt by Dh1.6 billion in last 18 months,'' he said.
"Thanks to the reform-oriented leadership of this country, the market is poised
for a long-term upswing. From announcing long-term visas to boost demand, to the
establishment of the Higher Committee for Real Estate to create a balance
between supply and demand, government initiatives remain the key driver for the
sector's growth," Damac chairman said.
"We look forward to 2020 as Dubai gears up to host the world for Expo 2020. The
short- and long-term impact of this global event will undoubtedly boost all
sections of the economy, which will have a positive impact on the real estate
sector," said Sajwani.
Senior vice-president Niall McLoughlin said the results were affected by
non-cash items including provisions for impairment on development properties and
for "doubtful debts" worth Dh165 million.