Damac profit slips as it looks ahead to stronger performance from Dubai property market

Damac Properties reported an 11.7 per cent fall in third quarter profits, as the developer’s chairman acknowledged that 2016 would be remembered as “the year of market turmoil and macroeconomic pressures”.

Damac, the company behind Dubai’s Akoya development, said its profit for the three months to the end of September fell to Dh902 million, compared with Dh1.02 bn in the same period last year. The developer’s revenue fell 13.3 per cent, to Dh1.74 billion, compared to Dh2bn a year earlier.

Profits came in 10 per cent higher than a mean of analyst estimates compiled by Bloomberg.

“The market is definitely challenging, investors today are seeking better value,” said Damac chairman Hussain Sajwani.

“However, with a medium to long term view, we believe that Dubai is well positioned for continued growth, and we expect the city to consistently outperform more established metropolitan centres around the world.”

Damac said that it delivered over 800 units in its flagship Akoya development during the third quarter, taking the total delivered properties for the year to over 1,300 units.

The developer said that it expected to meet the lower end of its guidance range of 2,700 to 3,000 delivered units during the year, despite “unforeseen delays” to some of its international projects.

It said that with the seasonally strong fourth quarter to come, that management reiterated its guidance for full year sales to be greater than Dh7bn.

Damac shares have lost 6 per cent of their value so far this year, compared with a 4.1 per cent gain by the Dubai index as a whole. The shares fell 0.4 per cent yesterday to Dh2.18.