May 15, 2018 / 5:47 AM / 2 months ago

Dubai's DAMAC Q1 profit falls 45 pct amid weak property market

DUBAI, May 15 (Reuters) - Dubai’s DAMAC Properties , owner and operator of the only Trump-branded golf club in the Middle East, posted a 45 percent drop in first-quarter profit from a year earlier although profit rose marginally from the previous quarter.

The results came as Dubai, its core real-estate market, is under pressure due to lower property prices and subdued sales as new developments hit the market.

DAMAC’s net profit was 484 million dirhams ($132 million), down from 880 million dirhams a year earlier, it said in a statement.

Arqaam Capital had forecast a net profit of 635 million dirhams and EFG Hermes’ projection was 610 million dirhams for first-quarter net profit.

DAMAC’s net profit, however, was above its fourth-quarter profit of 459 million dirhams, the company said.

Residential property prices in Dubai registered a 12-month decline of 2 percent on average, while rents declined by up to 5 percent in some areas, according to real estate consultancy Cavendish Maxwell. ($1 = 3.6730 UAE dirham) (Reporting by Saeed Azhar; Editing by Ghaida Ghantous and Gopakumar Warrier)

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