DUBAI: DAMAC Properties Dubai Co. announced financial results for the first half of 2020, reporting total revenue of AED 2.4bn vs AED 1.9bn in 1H 2019. Booked sales for the period stood at AED 1.05bn vs AED 1.77bn for the similar period last year.

Gross profits for the period stood at AED 563mn (1H 2019: AED 502mn) with gross profit margins of 23.7%. Total assets stood at AED 22.6bn compared to AED 23.8bn as of 31 December 2019.

Net loss for the period was AED 387 million (1H 2019: Profit of AED 82 million). The global outbreak of Covid 19 and subsequent lockdowns and travel restrictions adversely impacted performance and profitability.

Profit during the period was adversely impacted due to prevalent market conditions and resultant provisions.

As of 30 June 2020, Gross debt stood at AED 3.5bn, Cash and bank balances stood at AED 4.4bn and Development properties stood at AED 9.0bn. Shareholders’ equity reported at AED 13.6bn as at 30 June 2020.

The Company also saw gross debt reduction by AED 377mn during 1H 2020. During the first 6 months of the year DAMAC Properties reached the milestone of crossing 30,000 unit deliveries with c.1,250 units delivered in the Akoya master community and Business Bay.

Hussain Sajwani, Chairman of DAMAC Properties, said, ‘’2020 saw a relatively good start to operations however in March we witnessed the Global pandemic of Covid-19. This has and continues to clearly impact all companies globally. Subsequent lockdowns and social distancing measures introduced had a negative impact on sales and business activity. Resulting travel restrictions impacted the economy and the real estate sector and we will see a difficult market for the coming 18 to 24 months.

However we are optimistic that the lead up to the Dubai Expo at the end of 2021 will allow some of the excess real estate supply be absorbed’’.

“We have been going through headwinds, both from a tough GCC macro environment & a global real estate asset class perspective, DAMAC remains extremely strong from a balance sheet perspective. We continue to focus on cash collections, cutting our receivables & controlling operational costs whilst still managing to compete within a highly competitive market’’.

He continued: ‘’DAMAC remains aligned with the government’s strategy to create a healthy balance between supply and demand in the market by having no new launches to avoid adding new commitments. Our focus remains on selling completed and near completion inventory’’.

Sajwani concluded: ‘’On behalf of DAMAC, I would like to thank the visionary leaders of the UAE for their ongoing and continuous approach to business & innovation. It is through their leadership efforts, ambition and their measures & guidance in the face of global challenges & changes that have allowed the UAE to continue its success & growth story’’.