Damac Properties reported an 11.7 per cent fall in third-quarter profits, as the developer’s chairman acknowledged that this year would be remembered as “the year of market turmoil and macroeconomic pressures”.
Damac, the company behind Dubai's Akoya development, said its profit for the three months to the end of September fell to Dh902 million, compared with Dh1.02 billion in the same period last year. The developer's revenue fell by 13.3 per cent, to Dh1.74bn, compared with Dh2bn a year ago.
The profits, however, came in 10 per cent higher than a mean of analyst forecasts compiled by Bloomberg.
“The market is definitely challenging. Investors today are seeking better value,” said the Damac chairman Hussain Sajwani.
“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.”
Damac said it delivered more than 800 units in its flagship Akoya development during the third quarter, taking the total number of delivered properties for the year to more than 1,300 units.
The developer said it expected to meet the lower end of its guidance range of 2,700 to 3,000 delivered units during the year, despite “unforeseen delays” to some of its international projects.
It said that with the seasonally strong fourth quarter to come, the management reiterated its guidance for full-year sales to be greater than Dh7bn.
Damac shares have lost 6 per cent of their value so far this year, compared with a 4.1 per cent gain by the Dubai index as a whole.
The shares fell 0.4 per cent to Dh2.18.
jeverington@thenational.ae
