Damac to experience 'cash flow pressure' in 2018, says EFG Hermes - The National

Damac to experience 'cash flow pressure' in 2018, says EFG Hermes - The National:

"Operational and financial challenges at Damac Properties, one of the UAE’s biggest listed real estate developers, are expected to continue this year after the company reported a 25 per cent drop in full-year net profit for 2017, a report from EFG Hermes bank said.

“We think the company will face operational challenges and, potentially, see pressure on its cash flows over the coming 12 to 24 months; this might, in turn, place pressure on the company’s future dividends starting 2018, and on sustaining its historical attractive dividend yields,” the report said.

The developer’s net profit dropped to Dh2.76 billion in 2017 from Dh3.69bn in 2016, Damac said in a filing last week to the Dubai Financial Market, where its shares are traded. It attributed the drop to a higher cost of sales coupled with rising expenses and depreciation charges.

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