Damac Properties has reported a 11.7% fall in third-quarter net profit, according to a statement to the Dubai market, on which the developer is listed.
Damac reported a gross profit margin of 57% for the first nine months of 2016, recording revenues of $1.39 billion in that time period.
Net profits for the reporting period stood at $773.1 million, which was a 23% drop compared to the first nine months of 2015, the developer added in the statement to the Dubai Financial Market. However, total assets increased to $6.62 billion as of September 30, 2016, compared to $6.38 billion on December 31, 2015.
The company said that the accelerated delivery momentum in its core market of Dubai had allowed it to deliver more than 800 units in Q3 2016 in the AKOYA by Damac development. This brings the total deliveries for the nine months of the year to more than 1,300 units.
While it conceded that some international projects were facing ‘unforeseen delays’, Damac’s management still expects to meet the lower end of the guidance range of 2,700 to 3,000 units from incremental deliveries in Dubai.
The reporting period saw the developer book sales reaching $1.44 billion. Q3 2016 recorded sales of $462.8 million, which was a 5% sequential growth from Q2 2016. It was marginally below results recorded in Q3 2015.
With these results and the seasonally strong Q4 2016, Damac management reiterated guidance for full year sales to be greater than $1.90 billion.
“The Dubai market remains resilient. The levels of interest in our new product launches and existing portfolio are healthy,” said Hussain Sajwani, chairman of Damac Properties.
“The market is definitely challenging; investors today are seeking better value. However, with a medium to long term view, we believe that Dubai is well positioned for continued growth, and we expect the city to consistently outperform more established metropolitan centres around the world.
“This outperformance is underpinned by ambitious infrastructure investments, and a stringent and efficient regulatory framework stemming from the Government’s vision to create a sustainable city which enhances the experience of those living, working and visiting Dubai,” he concluded.