Developer reports $10m loss for 2019 as sales and revenue both drop significantly
Dubai-based Damac Properties on Tuesday reported its first annual loss in a decade as sales and revenue fell significantly in 2019 compared to the previous year.
The developer made a net loss of AED36.9 million ($10 million) compared to a 2018 profit of AED1.2 billion while sales of AED3.1 billion were down from AED4.3 billion and revenue of AED4.4 billion fell from AED6.1 billion a year earlier.
Damac also announced deliveries of about 4,700 units during 2019, saying it was focused on the execution of projects in the construction pipeline. The year marked the first deliveries in the master development Akoya alongside other projects in Dubai, it said.
Damac also reported total assets stood at AED23.8 billion as at the end of 2019, also down from AED25.2 billion a year earlier.Hussain Sajwani, chairman, Damac Properties, said:
“In Dubai, our primary market, we maintained our focus on completing and handing over units in our development pipeline.
“We have selectively launched fewer projects in softer market conditions to avoid adding new commitments and focus on selling completed and near completion inventory.
“Cash and liquidity management remains of paramount importance for Damac given the cyclical nature of the industry we operate in, Damac has historically paid for its land and debts commitments on or ahead of schedule. Damac continues to maintain a healthy financial and liquidity position and has reduced gross debt by AED1.6 billion in last 18 months.”
“He added: “Thanks to the reform-oriented leadership of this country, the market is poised for a long-term upswing. From announcing long-term visas to boost demand, to the establishment of the Higher Committee for Real Estate to create a balance between supply and demand, government initiatives remain the key driver for the sector’s growth.”
“We look forward to 2020 as Dubai gears up to host the world for Expo 2020. The short- and long-term impact of this global event will undoubtedly boost all sections of the economy, which will have a positive impact on the real estate sector.”