Damac Properties reported a 50 per cent increase in net profit for the second quarter of 2015 to Dh1.4 billion on the back of a 12 per cent increase in revenues to Dh2.3bn.
Over the first six months of the year, it achieved a net profit of Dh2.7bn, which was 37 per cent higher than the Dh1.7bn achieved last year. Turnover was 30 per cent higher at Dh4.7bn.
Damac did not provide a direct comparison of its results as its parent company changed as a result of its listing on the Dubai Financial Market in January.
However, chairman Hussain Sajwani said it had performed strongly during the first half of 2015, booking new sales of Dh5.1bn. He argued that this showed “that interest levels for the right real estate product at the right price remains robust”.
“The Dubai real estate market has continued to mature with price stabilisation in 2015. This is a welcome and natural progression for any developing market,” he said.
“We have already seen a marked improvement in the first trading month post these results whereby in the month of July we have seen strong growth in booked sales over the traditionally quieter June summer month.”
Damac also said it had made good progress in project delivery. It has reached the 82nd of 86 storeys at its Damac Heights project in Dubai Marina and at Damac Towers 41 of the 58 storeys above its podium level have been built.
Meanwhile, at Akoya by Damac work has started on 2,200 villas, with the first of these expected to be handed over later this year.
Damac is proposing a 20 per cent dividend to shareholders - half of which will be paid in cash and the rest in bonus shares. By midday, the company’s share price had increased by almost 15 per cent to Dh3.67 per share.
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