Damac chairman expects Covid-19 to impact property prices and demand - Arabianbusiness:
Chairman of Dubai-based developer Damac Properties Hussain Sajwani believes the current coronavirus pandemic will impact prices and demand for property.
It comes as the company reported a net loss of AED120 million ($32.7m) for the first quarter of 2020, compared to a AED31m ($8.4m) profit for the same period last year, which has been attributed to “non-cash items”.
Sajwani said profits were hit by the provision for impairment on development properties amounting to AED130m ($35.4m), provision for impairment on trade receivables (AED53m - $14.4m) and “loss on fair value” of financial investment (AED14m - $3.8m) “due to prevalent market conditions”.
He has also warned of the inevitable impact of coronavirus on future results. “We have assessed the potential impacts of the outbreak on our operations due to the restrictions placed by various governments to curb the spread of Covid-19. This will likely impact the prices and demand of properties, expected credit loss from trade receivables and contract assets and the fair valuation of financial investment.”
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| Damac chairman Hussain Sajwani said profits were hit by non-cash items. |
Chairman of Dubai-based developer Damac Properties Hussain Sajwani believes the current coronavirus pandemic will impact prices and demand for property.
It comes as the company reported a net loss of AED120 million ($32.7m) for the first quarter of 2020, compared to a AED31m ($8.4m) profit for the same period last year, which has been attributed to “non-cash items”.
Sajwani said profits were hit by the provision for impairment on development properties amounting to AED130m ($35.4m), provision for impairment on trade receivables (AED53m - $14.4m) and “loss on fair value” of financial investment (AED14m - $3.8m) “due to prevalent market conditions”.
He has also warned of the inevitable impact of coronavirus on future results. “We have assessed the potential impacts of the outbreak on our operations due to the restrictions placed by various governments to curb the spread of Covid-19. This will likely impact the prices and demand of properties, expected credit loss from trade receivables and contract assets and the fair valuation of financial investment.”
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