The chairman of Dubai-based Damac Properties said on Thursday he is pinning hopes on next year’s Expo event to reinvigorate the real estate market after his company posted losses of AED931 million for the first nine months of 2020.
This compared to a net profit of AED133 million for the same period last year. The developer said total revenue rose to AED3.7 billion vs AED2.8 billion in the first nine months of last year while booked sales for the period stood at AED1.6 billion, down on the AED2.4 billion posted for the similar period last year.
Total assets stood at AED21.8 billion compared to AED23.8 billion as of the end of 2019.
The company said 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, it added.
Hussain Sajwani (pictured), 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.”
He added: “Damac’s strong balance sheet has allowed it to absorb much of the market shock and we are optimistic that Dubai Expo next year will reap positive rewards for the real estate industry as sales and transactions will increase, offsetting the dip in the market due to Covid-19.
“In the meantime, we are persevering and recording important progress as we focus on deliveries and continue construction projects. Through hard work and a forward-thinking management team, we are continuously striving to operate more efficiently, by cutting our receivables, optimising operational costs and focusing on cash collections.”
Damac said it delivered 1,870 in first nine months of the year in Akoya and Business Bay developments.