Damac Properties' 2020 loss widens to $283m

Damac Properties has posted an AED1.04 billion ($283 million) net loss for 2020 compared to AED37 million ($10 million) the year before. Total assets stood at AED 21.1 billion compared to AED 23.8 billion as of December 31, 2019.

Announcing its audited financial results for 2020, Damac said the lasting effects of Covid-19, which has devastated economies across the globe, had understandably impacted the profit margin at Damac.

With global lockdowns, travel restrictions and the dip in global travel, Dubai's property market has been adversely affected, it stated.

However, Damac's total revenue for the year surged to AED4.7 billion from AED4.4 billion in 2019, while the booked sales for the period stood at AED2.3 billion vs AED 3.1 billion in 2019.

The Dubai developer pointed out that the total assets stood at AED21.1 billion compared to AED 23.8 billion as of 31 December 2019.

As of December 31, 2020, the gross debt stands at AED3.2 billion, while cash and bank balance total AED 4.2 billion. Shareholders’ equity stood at AED 13 billion as of 31 December 2020.

During this challenging period, Damac had delivered a total of 3,000 units mainly in its Akoya and Business Bay developments. During the year, Damac also reached the milestone of crossing 32,000-unit deliveries since inception.

On the performance, Chairman Hussain Sajwani said: "2020 was indeed a challenging year for the global economy, with the travel and tourism industries particularly hit due to the Covid-19 pandemic. With the smart leadership of the UAE, we are in a far better position for economic recovery, although I still believe it will take 12-24 months for the real estate industry to fully recover."

"I also want to thank our stakeholders who have help us achieve great things over the years, including our employees, partners, contractors, suppliers and, of course, our customers who have contributed to the success of Damac."