Dubai DAMAC’s profits fall 45% in Q1

Big 5

Dubai’s DAMAC Properties, owner and operator of the only Trump-branded golf club in the Middle East, posted a 45 percent decline in first-quarter profits from a year earlier although profit rose marginally from the previous quarter.

The results came as Dubai, its core real-estate market, is under pressure due to lower property prices and subdued sales as new developments hit the market.

DAMAC’s net profit was 484 million dirhams ($132 million), down from 880 million dirhams a year earlier, it said in a statement.

Arqaam Capital had forecast a net profit of 635 million dirhams and EFG Hermes’ projection was 610 million dirhams for first-quarter net profit.

DAMAC’s net profit, however, was above its fourth-quarter profit of 459 million dirhams, the company said.

Residential property prices in Dubai registered a 12-month decline of 2 percent on average, while rents declined by up to 5 percent in some areas, according to real estate consultancy Cavendish Maxwell. ($1 is equivalent to 3.6730 UAE dirham)

Source: Reuters