Dubai's Damac Sees Profit Sink 94% Amid a Property Slowdown

(Bloomberg) -- 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% lower than the same period last year. Its profit missed the lowest analyst estimate compiled by Bloomberg.

Dubai's Damac Sees Profit Sink 94% Amid a Property Slowdown

In Depth

  • Revenue of 896.4 million dirhams was more than 50% lower than the same period last year
    • Link to company’s presentation
  • Dubai real-estate companies and developers are facing declining property prices as demand falters
  • Damac last year posted the lowest annual profit since 2013

Market Insights

  • Stock has lost about 38% in 2019, versus a drop of 5.1% for an index tracking real-estate companies in Dubai. The stock rose 1.6% on Wednesday as of 10:16 a.m. local time, snapping an eight-day losing streak
  • 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 GBP175m loan to develop a tower in London

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