DAMAC Properties reports revenue of AED3.7bn, net loss of AED931mn for first nine months of 2020
DAMAC Properties Dubai Co. PJSC (DFM: DAMAC) (“DAMAC” or the “Company”) announced financial results for the first nine months of 2020. Total revenue stood at AED 3.7 billion vs AED 2.8 billion in 9M 2019. Booked sales for the period stood at AED 1.6 billion vs AED 2.4 billion for the similar period last year.
Net loss for the period was AED 931 million (9M 2019: Profit of AED133 million). Gross profits for the period stood at AED 828 million (9M 2019: AED 838 million). Gross profit margin declined to 22.7% vs 30.3% last year. Total assets stood at AED 21.8 billion compared to AED 23.8 billion as of 31 December 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.
As of 30 September 2020, Gross debt stood at AED 3.3 billion, Cash and bank balances stood at AED 4.6 billion and Development properties stood at AED 8.5 billion. Shareholders’ equity stood at AED 13.1 billion as at 30 September 2020. The Company also saw gross debt reduction by AED 0.5 billion during 9M 2020.
DAMAC delivered c. 1,870 in first nine months of the year in AKOYA and Business Bay developments. During the year, DAMAC also reached the milestone of crossing 30,000 unit deliveries since inception.
Hussain Sajwani, Chairman of DAMAC Properties, 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.”
“DAMAC’s strong balance sheet has allowed it to absorb much of the market shock and we are optimistic that Dubai Expo next year will reap positive rewards for the real estate industry as sales and transactions will 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. 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.”
“I am grateful for the wisdom and decisive action taken by UAE leaders to effectively manage the Covid-19 situation in the country. Through social distancing, mask mandates and great access to healthcare, our country has positioned itself on the fast track to recovery. Meanwhile, our leaders stay focused on improving business and innovation, which is one of the many reasons why the UAE remains resilient in face of global challenges.”
“We also thank all our stakeholders who have worked for our success over the years, including our employees, partners, contractors, suppliers and of course customers who have all contributed in the success of the company.”