(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.
Revenue of 896.4 million dirhams was more than 50% lower than the same period last year. Dubai real-estate companies and developers are facing declining property prices as demand falters Damac last year posted the lowest annual profit since 2013
The 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
On March 13: U.A.E. Bank Chief Warns of Need to Extend Property Loans (2) On Feb. 19: Dubai’s ‘Long Decline’ in Property Prices Isn’t Over Yet for S&P On Feb. 14: Damac Properties Full-Year Net Income Misses Lowest Estimate