Dubai-based DAMAC Properties’ Q1 profits fall 94%

Big 5

Dubai’s DAMAC Properties , the owner and operator of the only Trump-branded golf club in the Middle East, posted a 94 percent annual decline in its first quarter net profit, pressured by a slump in the emirate’s property market.

DAMAC said on Wednesday its net profits in the first three months of the year amounted to 31.1 million dirhams ($8.47 million), against 483.9 million dirhams during the same period a year earlier.

EFG Hermes had forecast a net profit of 270 million dirhams.

Dubai property prices have fallen since a mid-2014 peak, hurt by weaker oil prices and muted sales.

DAMAC’s revenues also dropped, by 53 percent, to 896.4 million dirhams.

S&P Global Ratings expects Dubai residential property prices to fall another 5-10 percent this year due to a continued gap between supply and demand, before steadying in 2020.

Source: Reuters