PHOTO
More than 50% growth in Net Profit over H1 2014
Interim Dividend payment of 20%
Revenues at AED 4,749 million
Net Profit at AED 2,650 million
Dubai - DAMAC Properties Dubai Co PJSC (DFM: DAMAC) ("DAMAC" or the "Company"), a leading developer of high-end property in the Middle East, announces results for the six months ending 30th June 2015.
DAMAC Financial Highlights for H1 2015:
•Revenues of AED 4,749 million($1,292m).
•Net profit of AED 2,650 million ($721m).
•Total assets at AED 20,813 million, ($5,663m), representing growth of11% compared to 31st December 2014.
•Cash and Bank Balance at AED 8,731 million, ($2,376m), representing growth of 32% compared to 31st December 2014.
•Advances from customers stood at AED 5,922 million, ($1,611m) as at 30th June 2015.
•Development properties at AED 7,508 million, ($2,043m) as at 30th June 2015.
•Net cash generated from operating activities: AED 1,735 million.
•Six month EPS of AED .48 per share
•Interim Dividend payment: 10% Cash Dividends and 10% Bonus shares.
DAMAC has adopted the International Financial Reporting Standard 15 (IFRS 15) effective 1st January 2015.
Due to the restructuring of DAMAC Properties Dubai Co PJSC in 2014, year on year % comparisons are not applicable. For relevant year on year comparable, the results of DAMAC Real Estate development limited or "DRED", the wholly owned subsidiary of DAMAC and the owner of all real estate assets should be reviewed.
DAMAC Operational Highlights for H1 2015:
•Booked SalesAED 5,109million ($1,390million).
•1511 units handed over in 1H. This results in cumulative deliveries of 14,375units to date by DAMAC.
•Introduction of the Residences at Paramount Tower Hotel & Residences on ShZayed Road, Dubai.
•Introduction of 'Vista Lux', the entertainment and hospitality component of AKOYA Oxygen.
•Introduction of 'Golf Promenade' Serviced Hotel apartments at AKOYA by DAMAC.
•Introduction of 'Carson' at AKOYA by DAMAC.
•Introduction of 'The Woods' at AKOYA Oxygen.
•Introduction of 'NOVA Serviced Hotel Villas' at AKOYA Oxygen.
•Company commenced handover of the first project in Doha-Qatar in Q2 2015.
•Opening of three new projects under the DAMAC Maison and NAIA hospitality brands.
The company has seen good construction progress across the portfolio in H1 2015:
-DAMAC Heights has reached level 82.
-DAMAC Towers by Paramount (almost 2,000 keys) is at level 41 above podium on all four towers.
-Since the launch of AKOYA Oxygen, there continues to be strong interest in real estate that are part of Golf Communities, in particular those which have collaborations with Global brands.
-The external road works are well underway to provide access, the lead consultant has been appointed, the Golf Course design is completed and the grading works on four major clusters is now completed, with work underway on 11 further clusters.
-At AKOYA by DAMAC work is progressing well; the golf course is 96% complete and the clubhouse construction underway. Low rise apartments are also continuing to rise, with the first six buildings of the G+7 projects reaching rooftop.
-At AKOYA by DAMAC, 2,200 villas under construction with circa 50% on second floors and structure complete. The first villas and G+7 are expected to be handed over at the end of this year.
Hussain Sajwani, Chairman of DAMAC, commented:
"The Dubai real estate market has continued to mature with price stabilisation in 2015. This is a welcome and natural progression for any developing market which ensures long-term sustainability.
The first half of the year has seen strong performance for DAMAC with booked sales of AED 5,109 millionshowing that interest levels for the right real estate product at the right price remains robust.
In the past six month period we saw recognised revenue of AED 4,749 million ($1,292m) and gross profit of AED 2,863 million ($779m). The company generated net profit of AED 2,650 million ($721) during the first six months of 2015.
The Board of Directors are proposing to the forthcoming general meeting an interim cash dividend of 10% of the paid up share capital. Dividend paid would amount to AED550 million in cash. With these strong results, the Board is further recommending a Bonus Share equivalent to 10% of the Company's Share Capital equating to 550 million shares.
We have developed a market leading brand firmly positioned in the luxury sector and believe this to be a powerful differentiator from our competitors as we continue to offer a unique product with a range of properties and offers to address most sub-segments of our target customers.
We strongly believe that our Sales and Marketing initiatives and financial strength will help us further distinguish ourselves during this period in the cycle.
We have already seen a marked improvement in the first trading month post these results whereby in the month of July we have seen strong growth in booked sales over the traditionally quieterJune summer month.
We do expect prices to continue to stabilise through 2015 as we operate in a now mature real estate market. This stabilisation is the natural progression for any developing market which ensures long-term sustainability.
On a macro perspective, Dubai is growing faster than most predictions, underpinned by 13 percent of the AED 41 billion deficit-free budget allocated to infrastructure spending this year alone. Tourism numbers continue to break records, with more than 20 million visitors expected through Dubai airports in June, July and August, and the GDP target of 4.5% is set to outperform the global economy.
Looking further out, continued economic and demographic growth, together with ambitious infrastructure spend and global world class events, should support the market through 2020.
I would finally like to express my appreciation to all my colleagues for their dedication and hard work in delivering this performance. We strive to continue delivering value to our customers and shareholders."
-Ends-
Exchange rate 1 USD=3.675 AED
DAMAC Properties Dubai Co PJSC
Investor.relations@damacgroup.com
© Press Release 2015
