{"id":54865,"date":"2017-05-15T15:58:37","date_gmt":"2017-05-15T08:58:37","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/damac-positive-amid-tough-market\/"},"modified":"2017-05-15T23:39:21","modified_gmt":"2017-05-15T16:39:21","slug":"damac-positive-amid-tough-market","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/damac-positive-amid-tough-market\/","title":{"rendered":"Damac positive amid tough market"},"content":{"rendered":"


\nDamac Properties yesterday reported a 16 per cent fall in first-quarter net profit, missing analysts’ forecasts, because of lower property development revenue and a sharp drop in income from the cancellation of units. The Dubai-based developer of Damac Hills and Aykon City posted a net income of Dh880 million, compared with Dh1.1 billion in the same period last year. Profits came in well below a forecast of Dh1.1bn made by NBAD Securities.
\n“Despite the challenging market conditions, our medium- to long-term outlook remains positive, as we remain dynamic and continue providing the right products that suit the changing market needs,” said Hussain Sajwani, Damac’s chairman, in a statement. Although Damac’s revenue rose by 20 per cent to Dh1.19bn for the quarter, property development revenue slipped by 18.5 per cent to Dh1.08bn. Income from the cancellation of units declined by 72 per cent to Dh86m for the period.
\nBooked sales reached Dh2.2bn for the quarter, up by 10 per cent from Dh2bn for the same period last year and up by 30 per cent from Dh1.6bn for the fourth quarter of last year. The company said that such figures were consistent with earlier guidance of Dh7bn booked sales for 2017.”2016 was a year of market stabilisation and the start of 2017 has been promising and we will continue to innovate on our products to meet the demands of a wider audience of customers,” said Mr Sajwani.
\nThe developer announced plans last month for a five-tower hotel made up of 2,000 rooms overlooking its planned Trump-branded golf course at Akoya Oxygen. Analysts remain optimistic on Damac, despite uncertainty over the prospects for Dubai’s real estate market in 2017.”We reiterate our hold recommendation and Dh2.84 target price,” said NBAD Securities in an analyst note. “The property market is showing signs of recovery, as evidenced by higher sales volume. Our ratings revision will hinge upon further evidence of sustained recovery in the property market during the coming quarters.”
\nMohamed Alabbar, Emaar Properties’ chairman, noted an increase in property sales during the first quarter, contributing to a 15 per cent rise in first-quarter profit.But the broker Cluttons said in its Spring Market Outlook that Dubai property prices are still 7.8 per cent lower than a year ago and transaction volumes in the market for completed homes is 18.4 per cent lower. Damac shares ended the day unchanged at Dh2.72.
\njeverington@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Damac positive amid tough market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Damac Properties yesterday reported a 16 per cent fall in first-quarter net profit, missing analysts’...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-54865","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-egV","jetpack-related-posts":[{"id":32693,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/china-state-to-build-part-of-damac-hotel-project\/","url_meta":{"origin":54865,"position":0},"title":"China State to build part of Damac hotel project","date":"November 2, 2016","format":false,"excerpt":"\r Damac Properties has awarded the China State Construction Engineering Corporation a Dh554 million contract to build part of its second Paramount Hotel project in Dubai.China State, the world's third-largest construction company, said it had been awarded the main work contract to build 27 floors of serviced flats of the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":32717,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cscec-to-build-part-of-damac-hotel-project\/","url_meta":{"origin":54865,"position":1},"title":"CSCEC to build part of Damac hotel project","date":"November 2, 2016","format":false,"excerpt":"\r Damac Properties has awarded the China State Construction Engineering Corporation (CSCEC) a Dh554 million contract to build part of its second Paramount Hotel project in Dubai.CSCEC, the world's third-largest construction company, said it had been awarded the main work contract to build 27 floors of serviced flats of the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4452,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/tough-time-ahead-for-dubai-developer-damac-as-profit-falls\/","url_meta":{"origin":54865,"position":2},"title":"Tough time ahead for Dubai developer Damac as profit falls","date":"February 12, 2016","format":false,"excerpt":"\r \r Damac warned that it was facing a \"challenging competitive environment\" after the Dubai developer posted an 8 per cent drop in fourth-quarter profit.In its full-year results for 2015, Damac said that market conditions in Dubai had cooled significantly since the previous year as profit for the three months\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":432,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-damac-looks-to-shake-off-trump-storm-with-rental-incentive\/","url_meta":{"origin":54865,"position":3},"title":"Dubai’s Damac looks to shake off Trump storm with rental incentive","date":"December 17, 2015","format":false,"excerpt":"\r \r Damac Properties, the developer caught in a storm over its partnership with the controversial US presidential hopeful Donald Trump, is offering lucrative rental returns on some of its properties to lure investors.Damac, which said it would stick with Trump International despite his anti-Muslim tirade, is providing a 24\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":58662,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/damac-to-deliver-1bn-muscat-port-project\/","url_meta":{"origin":54865,"position":4},"title":"Damac to deliver $1bn Muscat port project","date":"June 22, 2017","format":false,"excerpt":"\r The Dubai-based developer \u00adDamac has been chosen by the government of Oman to develop the US$1 billion project to redevelop Port Sultan Qaboos in Muscat.Damac's brief from the Omani government's investment and development arm, Omran, is to transform the historic port into a tourist-led, mixed-use destination. Port Sultan Qaboos\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28709,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-developer-damac-targets-millennials-with-akoya-selfie-villa-project\/","url_meta":{"origin":54865,"position":5},"title":"Dubai developer Damac targets millennials with Akoya Selfie villa project","date":"October 5, 2016","format":false,"excerpt":"\r Damac Properties is making another attempt to attract millennials to buy its homes with the sales launch this weekend of its latest villa community Akoya Selfie.The Dubai listed developer announced today that it would open sales on a collection of three-bedroom villas at its 55-million-square foot Akoya Oxygen development\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/54865"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=54865"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/54865\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=54865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=54865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=54865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}