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Dubai Developer, Damac, has its profits Doubled this Quarter

Profit at Damac during the third quarter more than doubled to US$224.3 million as the London-listed developer handed over scores of serviced apartments in Dubai.

The company, headed by Hussain Sajwani, said that profits for the period soared 166 per cent from US$84.8 million a year earlier as the developer completed its 22-storey Vogue tower and 18-storey Capital Bay in Dubai’s Business Bay area and two buildings at its low-rise Lincoln Park development on Umm Suqeim Road.

The rise in profit came on the back of a 259 per cent increase in third-quarter revenues, which soared to $577.3m from $160.6m a year ago.

Damac securities, which started trading on the London bourse in December in the form of global depositary receipts, a form of quasi-ordinary shares with less rigid listing requirements, rose 5.1 per cent in early trading on Wednesday – their highest increase in nearly three months – to stand at $19.45 at 4.30pm UAE time.

Damac, which is known for offering customers Lamborghinis and yachts when they buy luxury flats and villas, said it had handed over 2,581 properties across seven projects to generate $1.5bn and had made another $600.5m during the first nine months of the year from land sales. More than 900 were handed over in the third quarter, it said.

The company is currently building a vast Donald Trump-branded golf course surrounded by luxury villas on the outskirts of Dubai known as Akoya and thousands of branded serviced apartments.

“This is another solid set of financial results, which show significantly improved profitability that has been driven by an increase in revenues as a result of strong sales activity and the completion and handover of a number of key projects,” said Mr Sajwani, the executive chairman and chief executive.

The news comes despite a slowing of sales volumes and prices in the Dubai real estate market. Last month Emaar Properties reported a fall in revenues from a second successive quarterly drop in home sales.

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