Dubai property developer Damac Properties reported a nearly 87 per cent drop in second-quarter net profit on Wednesday, hurt by the emirate’s slumping property market.
Damac, owner and operator of the only Trump-branded golf club in the Middle East, said in a statement its net profit in the three months ended June 30 fell to Dhs 50.6 million ($13.78 million) from Dhs 378.2 million a year ago.
The results still beat analyst expectations from regional investment bank EFG-Hermes, which expected the developer to report a profit of Dhs 37 million.
Revenue fell 45.7 per cent to Dhs 971.1 million.
Dubai property prices have fallen since a mid-2014 peak, hurt by weaker oil prices and muted sales.
In a separate disclosure, Dubai-listed contractor Arabtec Holding reported a 47.2 per cent drop in net profit for the second quarter to Dhs 26.1 million.
Revenue declined to Dhs 2.19 billion in the quarter, compared with Dhs 2.39 billion in the same period a year earlier.
S&P Global Ratings expects the downturn to continue this year, with residential property prices falling another 5-10 per cent due to a continued gap between supply and demand, before steadying in 2020.
