Dubai Property Developer Plunges as Shareholders Cut Dividend

(Bloomberg) -- Damac Properties Dubai Co. tumbled after its shareholders approved a lower dividend than what its board recommended for 2017.

Shareholders at the real-estate developer approved a payout of 15 fils per share compared with the board’s recommendation of 25 fils, the company said in a statement, without providing further details. The shares retreated as much as 9.4 percent, the most in a year.

Damac Properties, which has two golf-course development deals with U.S. President Donald Trump’s family company, reported in February a full-year net income that missed the lowest analyst estimate. The firm’s biggest shareholder, Hussein Sajwani, said in January that he was open to selling as much as 15 percent of his stake.

The stock fell 15 percent this year compared with the 8.9 percent decline in the Dubai Financial Market General Index. The stock traded at 2.8 dirhams as of 11:16 a.m. in the emirate.

To contact the reporter on this story: Shaji Mathew in Dubai at shajimathew@bloomberg.net.

To contact the editors responsible for this story: Shaji Mathew at shajimathew@bloomberg.net, Dana El Baltaji

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