Source: Saudi Gazette
“The Dubai real estate market is at a consolidation point in the cycle and the rapid growth witnessed in 2012-2014 is now behind us. However, this market creates opportunities for well capitalised and experienced companies like ourselves with a strong track record,” said Hussain Sajwani, Chairman of DAMAC, a leading developer of high-end property in the Middle East, while announcing results for year ended Dec. 31, 2015.
During full year 2015, DAMAC recorded revenue of AED8.54 billion ($2.32 billion), gross profit of AED5.07 billion ($1.38 billion). DAMAC recorded net profit for the year at AED4.51 billion (c. $1.23 billion), an increase of 30% compared to 2014.
During 2015, total assets grew 25% to AED23.45 billion ($6.38 billion), Total equity grew 87% to AED9.83 billion ($2.68 billion). Gross debt stood at AED3.76 billion ($1.02 billion). Cash and bank balances stood at AED9.50 billion ($2.59 billion). DAMAC continues to maintain a healthy net cash position of AED5.74 billion ($1.56 billion) and gross debt to equity ratio stands at 0.38 as at Dec. 31.
Booked Sales for the year stood at AED9.06 billion ($2.47 billion). Area sold during the year was 8.12 mn sq ft, 3% higher than 2014. DAMAC has completed over 2,600 units in 2015, including units in AKOYA by DAMAC, the first master plan development around a Golf course in Dubai, thus demonstrating capabilities as a master developer.
Other completions in AKOYA by DAMAC include 3 buildings in the G+7 structures totaling 479 units (Golf Panorama, Golf Horizon, and Golf Vista). DAMAC also completed the first project in Qatar during the year with 512 units in Doha. Other developments completed during the year included, Lakeside, Tenora and DAMAC Maison Upper Crest. The overseas completions are noteworthy as they demonstrate the transferability of skills and operational know how into new markets.
The Company also continued to bring to market new and innovative products including Vista Lux the central hub of the AKOYA Oxygen development, The Promenade a residential and serviced apartments offering in AKOYA by DAMAC in addition to a number of new expansions in both AKOYA and AKOYA OXYGEN.
On the Towers front, Merano in Business Bay and Paramount Hotel and Residences on Sheikh Zayed Road were introduced. The company also added a new partner to the expanding stable of luxury brand associations with the launch of Bugatti Villas in AKOYA OXYGEN, the Company’s first automotive brand partnership.