DUBAI, Feb 11 (Reuters) - DAMAC Properties, one of Dubai’s largest non state-linked developers, swung to a net loss of 36.9 million dirhams ($10 million) in 2019 from a profit of 1.15 billion dirhams in the previous year, the firm reported on Tuesday.
It is the first yearly loss since 2010 for the owner of the only Trump-brand golf course in the Middle East, according to Refinitiv data.
DAMAC’s billionaire Chairman Hussain Sajwani last year said developers in the emirate should stop all new residential projects for up to two years to kickstart a recovery in Dubai’s troubled market.
Dubai has faced a slowing real estate market for most of the decade, barring a brief pickup more than five years ago. Housing oversupply has driven prices down at least a quarter since 2014.
DAMAC’s full-year revenue fell 28.2% to 4.4 billion dirhams as the firm said it focused on handing over units to customers and developing existing projects.
“We have selectively launched fewer projects in softer market conditions to avoid adding new commitments and focus on selling complete and near completion inventory,” Sajwani said in Tuesday’s bourse filing.
He said DAMAC had reduced its gross debt by 1.6 billion dirhams over the last 18 months and that the company “continues to maintain a healthy financial and liquidity position.”
DAMAC had a fourth quarter loss of 169.5 million dirhams compared with a 57 million dirhams profit in the corresponding period, according to Reuters calculations.
DAMAC did not immediately respond to a request to comment on the fourth quarter.
Dubai’s government last year announced it was setting up a real estate planning commission to regulate the sector and avoid competition between semi-government and private firms.
It is not clear what action the commission has taken since it was announced in September.
$1 = 3.6730 UAE dirham Reporting by Alexander Cornwell; Editing by Kim Coghill