Picture used for illustrative purpose. File

Gulf Today Report

Damac Properties Dubai announced financial results for the first nine months of 2020. Total revenue stood at Dhs3.7 billion vs Dhs2.8 billion in 9M 2019. Booked sales for the period stood at Dhs1.6 billion vs Dhs2.4 billion for the similar period last year.

According to WAM, net loss for the period was Dhs931 million (9M 2019: Profit of Dhs133 million). Gross profits for the period stood at Dhs828 million (9M 2019: Dhs838 million). Gross profit margin declined to 22.7 per cent vs 30.3 per cent last year. Total assets stood at Dhs21.8 billion compared to Dhs23.8 billion as of 31 December 2019.

The global outbreak of COVID-19 and subsequent lockdowns and travel restrictions adversely impacted performance and profitability. Profit continues to be adversely impacted due to provisions created in light of prevalent market conditions.

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Hussain Sajwani, Chairman of Damac Properties, said, "We continue to endure the effects of the global COVID-19 pandemic, which negatively impacted the real estate industry. With social distancing becoming the norm, travel restrictions and a major dip in tourism, the market has been significantly impacted.

"COVID-19 has upset the balance sheets for many companies, which industry leaders have been very vocal and transparent about and while many analysts are forecasting a U-shaped recovery, we believe it may be some time before we see an upward recovery."