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Wed 15 May 2019 02:31 PM

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Dubai's Damac sees Q1 profit slump amid slowdown

Damac Properties reports revenue of $244m, more than 50% lower than the same period last year

Dubai's Damac sees Q1 profit slump amid slowdown

Profit at Dubai-based Damac Properties plummeted in the first quarter as the company grapples with a slowdown in demand for real estate in its home market.

The developer net income for the first quarter was 31 million dirhams ($8.5 million), 94 percent lower than the same period last year. Its profit missed the lowest analyst estimate compiled by Bloomberg.

Damac reported revenue of 896.4 million dirhams ($244m), more than 50 percent lower than the same period last year.

Dubai real-estate companies and developers are facing declining property prices as demand falters. Last year saw Damac post its the lowest annual profit since 2013.

Damac’s stock has lost about 38 percent in 2019, versus a drop of 5.1 percent for an index tracking real-estate companies in Dubai.

The MSCI announced earlier this week that it will exclude Damac from its main emerging-market benchmark, which may trigger outflows of about $45m The company said in April that it received a £175m loan to develop its tower in London.