Complex Made Simple

Dubai’s Damac Properties profit jumps more than 50 per cent

First-half revenue was AED4.75bn as company delivered 1,511 housing units to buyers

Damac Properties Dubai Co., the builder of the branded Tiger Woods and Donald Trump projects, reported a net profit of AED1.4 billion for Q2 2015 with revenues of AED2.3bn.

This figure, representing a profit increase of more than 50 per cent, was the highest since the company entered the Dubai Financial Market in January.

Along with the figures for its former London-listed subsidiary Damac Real Estate Development (DRED), they equate to a 52 per cent increase in net profit and a 14 per cent rise in revenues.

During the first six months of the year, it achieved a net profit of AED2.7bn, 57 per cent higher than the DRED figure for last year, while turnover was 30 per cent higher at AED4.7bn.

Damac stock was up 15 percent at the close on Wednesday at AED3.68, making it the biggest gainer and the second-most traded stock on Dubai’s benchmark DFM General Index, which advanced 1.7 per cent. “The market has told us that it likes what it saw,” Adil Taqi, the chief financial officer of Damac Properties said.

Net income during the period was AED2.65bn ($721 million), the Dubai-based developer said in a statement on Wednesday. It didn’t provide a year-earlier figure. The company proposed a dividend payout equal to ten fils in cash for each share held and ten percent bonus shares. First-half revenue was AED4.75bn as the company delivered 1,511 housing units to buyers.

“They look like good numbers,” Tariq Qaqish, head of asset management at Al Mal Capital PSC, said from Dubai. “The announced dividends should support the stock further.”

“We have sold well, we have delivered well and we continue to be optimistic about the future. We are confident about the prospects for 2015,” Taqi added.