(Bloomberg) —
The fortunes of property developers in Dubai and Abu Dhabi diverged last year.
Dubai’s Emaar Properties PJSC reported a 58% slump in profit, while Damac Properties PJSC posted its second consecutive full-year loss — underscoring the impact of an oversupply aggravated by the coronavirus pandemic.
Aldar Properties PJSC in neighboring Abu Dhabi, however, performed better than Emaar and Damac. It posted a profit that was almost unchanged from a year ago as it benefits from government contracts.
A property glut and faltering demand have driven Dubai home prices down by more than 30% since the market peaked seven years ago, a decline made worse by the pandemic. The government last year set up a committee to manage supply and demand, while property developers temporarily halted new projects.
Emaar 2020 Numbers:
- Net income 2.62 billion dirhams vs 6.2 billion
- Estimate 2.87 billion dirhams
- Revenue 19.71 billion dirhams vs 24.6 billion
- Estimate 18.34 billion dirhams
- Founder Mohamed Alabbar: “Looking ahead to 2021, we see a world of opportunities — both traditional and technology-driven — that will help us grow in ways and in markets that didn’t exist five to 10 year ago”
- Link to statement
- Emaar shares +6.8% this year
Damac 2020 Numbers:
- Loss 1.04 billion dirhams vs loss of 37 million
- Estimate loss of 904 million dirhams
- Rev. 4.67 billion dirhams vs 4.4 billion
- Estimate 4.43 billion dirhams
- Chairman Hussain Sajwani: “2020 was a very tough year for all property developers in the United Arab Emirates and Damac felt the negative impact just the same”
- “I anticipate it will take at least 12 to 24 months to see a substantial recovery”
- Link to statement
- Damac shares -4.6% this year
Aldar 2020 Numbers:
- Profit 1.932 billion dirhams vs 1.925 billion
- Estimate 1.88 billion dirhams
- Rev. 8.4 billion dirhams vs 7.1 billion
- Estimate 7.95 billion dirhams
- Group CEO Talal Al Dhiyebi: “Aldar’s powerful performance in 2020 has set the tone for a new phase of sustainable growth. We have adopted a new operating model to propel the company to the next level in terms of scale and breadth of activity and to meet our ambitious sustainability targets”
- Link to statement
- Aldar shares +18% this year
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