May 15, 2019 / 5:48 AM / a year ago

DAMAC's first-quarter profits drop 94% as Dubai property market slumps

DUBAI, May 15 (Reuters) - Dubai’s DAMAC Properties , the owner and operator of the only Trump-branded golf club in the Middle East, reported a 94% annual drop in first-quarter net profit, pressured by a slump in the emirate’s property market.

DAMAC said on Wednesday its net profits in the first three months of the year amounted to 31.1 million dirhams ($8.47 million), against 483.9 million dirhams during the same period a year earlier.

EFG Hermes had forecast a net profit of 270 million dirhams.

Dubai property prices have fallen since a mid-2014 peak, hurt by weaker oil prices and muted sales.

DAMAC’s revenues also dropped, by 53%, to 896.4 million dirhams.

S&P Global Ratings expects Dubai residential property prices to fall another 5-10 percent this year due to a continued gap between supply and demand, before steadying in 2020.($1 = 3.6730 UAE dirham) (Reporting by Davide Barbuscia; Editing by Saeed Azhar)

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