(MENAFN- Khaleej Times) Damac Properties on Wednesday said its first-quarter revenues climbed 11 per cent to Dh1.785 billion while net profit rose to Dh792.9 million as investors continued to show interest in the company's product lines.
The Middle East's high-end property developer, which listed on Dubai Financial Market in January, said its development properties at Dh8.54 billion during January-March quarter largely unchanged compared to December 31, 2014 levels while the company's booked sales stood firm at Dh2.8 billion. Total assets up eight per cent to Dh20.41 billion compared to previous quarter ending December 31st last year.
It further said that quarter-on-quarter cash and bank balance at Dh8.03 billion registered a healthy growth of 21 per cent compared to December 31st last year. Advances from customers stood at Dh7.85 billion as at March 31st, 2015. Hussain Sajwani, chairman of Damac, said the first quarter of the year has seen the company build on its strong performance and results achieved for the full year 2014. He said booked sales for the first three months of 2015 show that there continues to be strong interest in the right product at the right price. "We are pleased with the response to our financial results January-March 2015 quarter, which show revenue rose 11 per cent and operating profit up six per cent. There remains a strong belief from international buyers in Dubai's fundamentals, and right luxury home, at the right price from a trusted and established developer is in demand," Sajwani told Khaleej Times. The region's premier property developer said Damac delivered 999 units in Lakeside during the quarter that pushed the cumulative deliveries to 13,865 units to date. "The company is planning to handover of the first project in Doha during second quarter of 2015," the company said in a statement.
About the progress on its various developments, the statement said Damac Towers by Paramount, which has almost 2,000 keys, is at level 28 above podium on all four towers. Damac Heights reached at level 69, Damac Maison's The Distinction hit level 52 and Damac Maison's Upper Crest topped out during the quarter.
The company also made progress on its flagship developments - Akoya Oxygen and Akoya by Damac. There is significant early construction progress on Akoya Oxygen with external road works well underway.
The project's bulk earthwork designs have been approved and contracts for the first 1,500 villas have also awarded. Designs for the Tiger Woods designed golf course finished and tender for construction to be issued in coming months.
Elaborating the second flagship project, the property developer said work on Akoya by Damac is progressing well. Golf course is substantially finished with the clubhouse construction underway. Main works package for over 2,200 villas awarded with the handover of the first villas at Akoya is expected between fourth quarter of 2015 and first quarter of 2016.
"Villas at our master development lifestyle communities, Akoya by Damac and Akoya Oxygen have supported our strong results, with the handover of 999 units also supporting strong revenue," Sajwani said.
In regards to Damac's key home market of Dubai, he said the emirate is continually outperforming real estate markets around the world with long-term, stable growth patterns.
"We have seen demand for luxury property remain solid, underlining the Dubai's position as the region's primary business and tourist destination. The Dubai market continues to mature and we are confident that this will bring long-term stability to the sector," he said.
"We are firm believers in the Dubai property market € it is our home and I believe we are set for a period of steady, sustained growth in the medium term," he added.
The company said, the board of directors will recommend to the annual general meeting a cash dividend of at least 25 per cent of the paid-up share capital (Dh5.5 billion) for each of the years 2015 and 2016.
"For 2015, the dividend payment will be made over at least two payments - an interim of 10 per cent and a final payment of 15 per cent," the statement said. Damac shares rose 0.32 per cent and closed at Dh3.11 on Wednesday.
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