Leading Dubai luxury project developer Damac Properties has announced a total revenue of AED3.7 billion ($1.02 billion) for the first nine months compared to AED2.8 billion ($768 million) in 2019. However, it booked a net loss of AED931 million for the same period compared to a profit of AED133 million. 

 

Announcing the results for the first nine months, Damac said it booked sales stood at AED 1.6 billion vs AED 2.4 billion for the similar period last year.

 

The Dubai developer's gross profits stood at AED 828 million compared to AED838 million. The gross profit margin declined to 22.7% vs 30.3% last year, while total assets stood at AED21.8 billion compared to AED23.8 billion as of December 31, 2019.

 

The global outbreak of Covid-19 and subsequent lockdowns and travel restrictions adversely impacted performance and profitability. Profit continues to be adversely impacted due to provisions created in light of prevalent market conditions, said Damac in its statement.

 

As of September 30, 2020, the gross debt stood at AED 3.3 billion, while cash and bank balances hit AED 4.6 billion and Development properties at AED 8.5 billion. 

 

Shareholders’ equity was at AED 13.1 billion as of September 30. The Emirati developer also saw gross debt reduction by AED 0.5 billion during the nine-month period.

 

Damac delivered 1,870 in first nine months in Akoya and Business Bay developments. During the year, Damac also reached the milestone of crossing 30,000 unit deliveries since inception.

 

On the results, Chairman Hussain Sajwani said: "We continue to endure the effects of the global Covid-19 pandemic, which negatively impacted the real estate industry. With social distancing becoming the norm, travel restrictions and a major dip in tourism, the market has been significantly impacted."

 

"Covid-19 has upset the balance sheets for many companies, which industry leaders have been very vocal and transparent about and while many analysts are forecasting a U-shaped recovery, we believe it may be some time before we see an upward recovery," he stated.

 

Stating that Damac’s strong balance sheet had allowed it to absorb much of the market shock, Sajwani said it was optimistic that Dubai Expo next year would help reap positive rewards for the real estate industry as sales and transactions would increase, offsetting the dip in the market due to Covid-19.

 

"In the meantime, we are persevering and recording important progress as we focus on deliveries and continue construction projects," said the top official. 

 

"Through hard work and a forward-thinking management team, we are continuously striving to operate more efficiently, by cutting our receivables, optimising operational costs and focusing on cash collections," he added.-TradeArabia News Service