Dubai developer Damac Properties reports 20% fall in third-quarter profit

Damac’s third-quarter revenue was up 31 percent to Dh2.291 billion from Dh1.748 billion last year. (Courtesy Damac)

DUBAI: Dubai developer Damac Properties on Wednesday reported a 20.24 percent fall in third-quarter profit, its third consecutive earnings decline, caused by a steep rise in cost of sales.
Profit for the three-month stretch to September was at Dh719.34 million versus Dh901.96 million during year-ago period, while cost of sales rose a hefty 69.87 percent to Dh1.339 billion from Dh788.56 million, according Damac’s unaudited financial report submitted to the Dubai stock exchange.
Revenue was up 31 percent to Dh2.291 billion from Dh1.748 billion last year.
“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,” Hussain Sajwani, Chairman of Damac Properties, said in a statement.
Damac said it had partnered with the Roberto Cavalli Group for the third-quarter launch of the Just Cavalli project to feature the designer’s signature style in villas at Dubai flagship development AKOYA Oxygen.
The company also reported that it delivered a total of 852 units from its international developments, including the two-tower Damac Esclusiva project in Saudi Arabia and the three-tower The Heights project in Jordan, Damac’s first development in the said country.
“Construction continues on circa 6,300 villas at AKOYA Oxygen, and the 18-hole championship golf course continues to take shape,” Sajwani said.
“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.”