Dubai: Damac Properties is out to please shareholders with a proposed cash dividend of Dh1.51 billion (at 25 fils a share), derived from the Dh3.69 billion it booked in net profits for 2016. In 2015, Damac had reported Dh4.51 billion in net profits.

The developer’s 2016 numbers, which also includes Dh7.16 billion in revenues, suggests that the leading names in the local real estate sector were able to forge a fairly resilient set of numbers despite tough trading conditions. 

Just recently, Nakheel, which is not listed, wowed the market with net profits just under Dh5 billion. And on Tuesday (February 14), Aldar in Abu Dhabi reported an 8 per cent increase in net to Dh2.8 billion. 

Damac, in a statement issued to DFM (Dubai Financial Market), reported that it booked sales of Dh7.05 billion during the year gone by. It added that net profit margins were at 52 per cent, while total assets were up 5 per cent to Dh24.63 billion against the Dh23.45 billion in 2015.

“There is demand for quality real estate… but with the challenging market conditions we are operating in, what has changed is customers are seeking better value,” said Hussain Sajwani, Chairman. “Our medium to long term outlook remains positive, and we are well-positioned to accommodate and navigate these conditions.”

All through the second-half of 2016, Damac adjusted its launches with targeted offerings, including plot sales and off-plan properties targeted at a younger demographic. The developer, which is readying to open its first Trump-branded golf property next week, has been maximizing opportunities at its Akoya master-development. This tactic also helped the developer target different price points in a bid to convince buyers wary of the market conditions. 

“These investors were seeking to either diversify their current investment portfolio or were end-users with lifestyle aspirations,” Sajwani said. 

Last year, it was also the first to come in with a full-scale tower launch (Aykon City) along the Dubai Water Canal stretch. The project will feature six high-rises spread over a 4 million square foot area.

On the handover side, Damac delivered 2,400 units last year, including 1,600 homes at Damac Hills (formerly Akoya). And of the booked sales, Q4-16 fetched Dh1.71 billion and Dh7.05 billion for the full year. The handovers also included more than 600 hospitality units.

According to Sajwani, “2016 was a year of market stabilisation and we will continue to innovate on our products to meet the demands of a wider audience of customers. Our business model is such that it supports a steady pipeline of luxury properties… with our main differentiator being a range of premium locations and value that we bring to investors.”

And it has got the cash to fund new launches - as of December 31, cash and bank balances stood at Dh8.32 billion.

Development properties grew 12 per cent to be valued at Dh10.25 billion over the year and total equity grew 28 per cent to Dh12.62 billion (from Dh9.83 billion in 2015, net of dividend).