DAMAC Real Estate Development Limited (LSE: DMC) (DAMAC or the "Company"), a leading developer of high-end and luxury residential property in the Middle East, announces results for the twelve months ending 31 December 2014.

FINANCIAL HIGHLIGHTS
Recognized revenue grew by 64% to $2,009.6 million in the twelve months to December 2014 (FY 2013: $1,224.3 million), comprising development income attributed to the delivery of 3,553 units across 8 projects; alongside land sales at flagship developments AKOYA by DAMAC and AKOYA Oxygen, which generated revenue of $873.5 million, 43% of total revenues.

Gross profit for FY 2014 increased by 49% to $1,176.1 million (FY 2013: $788.0 million), with a 46% growth in net profit to $937.0 million for the same period (FY 2013: $641.5 million); both driven by the growth in recognized revenues.

Gross margin remained strong at 58.5% for FY 2014.

Operating profit increased by 48% to $939.3 million for FY 2014 (FY 2013: $636.4 million).

Cashflow generated from operations grew to $882.4 million for FY 2014 (FY 2013: $489.8 million) driven mainly by higher booked sales resulting in increased cash collection as advances from customers and higher profit generated during the period.

Total assets stood at $5,122.7 million as at 31 December 2014, representing growth of 68% compared to 31 December 2013, primarily led by an increase in cash and bank balances and increase in development properties.

Development properties stood at $2,327.5 million, as at 31 December 2014, an increase of $394.8 million (20%) compared to 31 December 2013. This increase is primarily due to the additions to land bank, comprising AKOYA Oxygen and few other plots, partially offset by deliveries during the period.

Shareholders equity increased by 118% from 31 December 2013 to $1,433.6 million at 31 December 2014 as a result of net profit earned during the period, and adjusted for dividend distributed during the year.

Gross debt stood at $719.6 million (31 December 2013: $85.3 million). The increase in gross debt pertains to the $650 million Sukuk raised in April 2014 (five year note at a fixed coupon of 4.97% per annum).

Advances from customers stood at just short of $2 billion as at 31 December 2014, compared to $1,715.3 million as at 31 December 2013. The increase was mainly due to higher booked sales and cash collection from customers during the period.

Completion of the DAMAC GDR share swap offer took place on 9 January 2015 and admission to the DFM took place on 12 January 2015.

OPERATIONAL HIGHLIGHTS
Booked sales for FY 2014 increased 28% to $3.1 billion from $2.5 billion in FY 2013. Sales were mainly driven by the launch of AKOYA Oxygen along with healthy sales in existing in-progress projects by DAMAC.

3,553 units were completed and delivered during 2014, which includes 968 units delivered during 4Q 2014. Cumulative units delivered till date at 12,866 units.

8 developments were completed during 2014, including The Vogue, The Cosmopolitan, Waters Edge, Lincoln Park, Executive Bay, Capital Bay and two buildings of Lakeside as well as our first international development, Al Jawharah in the Kingdom of Saudi Arabia.

Significant operational milestones during 2014 include:
The launch of AKOYA Oxygen spreading over 55 million sq. ft., with a TRUMP World golf club, luxury villas, and 18-hole championship golf course designed by Tiger Woods.
The extension of The Drive at AKOYA to 2.5km, from 1.3km, making it the regions longest outdoor retail strip
The announcement of Paramount Hotel Downtown on Sheikh Zayed road.
Continued growth of serviced and hotel apartment offering; opening 4 DAMAC Hotels & Resorts developments during the period.
The launch of Constella, the first officially certified Sharia compliant development in the region.

Solid construction progress across all projects under development:
DAMAC Heights in Dubai Marina has reached the 53rd level.
Upper Crest in the Burj Area has been topped.
The Distinction in the Burj Area at the 43rd level.
DAMAC Towers by Paramount all four towers at the 16th level above podium.
AKOYA by DAMAC has more than 2,145 villas with main contractors.
Low rise G+7 projects have the raft and initial slab work has also been finished.
AKOYA Oxygen, significant early progress has been made. External road works are well underway to provide access into the site. The sales centre and site office are substantially completed. Bulk earthworks designs have been approved and the contractor is mobilising to the site.

In addition to the $513 million AKOYA Oxygen land purchase, other land acquisitions of $86 million, adding further potential for 1,500 new units to the total development pipeline (in-progress and in-planning), which, at the year end, comprises 38,000 units with a total estimated project value of more than $19.5 billion.

Hussain Sajwani, Executive Chairman and Chief Executive Officer of DAMAC, commented: 2014 was another milestone year for DAMAC; both as its first full year as a listed company and as a period in which the company delivered a record financial performance. The strong increase in recognised revenues during the year highlights the successful delivery and sale of land and units across a number of projects, as well as the appeal of our diverse product base to customers around the world.

The launch of AKOYA Oxygen in 2014, coupled with the ongoing development of our extremely popular AKOYA by DAMAC development, has supported and bolstered these higher revenues. Both developments are cornerstones of the DAMAC luxury proposition; drawing on the expertise and design from leading brands and figures such as the TRUMP Organisation and Tiger Woods Design to ensure they deliver the highest quality retail and leisure facilities. Our growing hospitality arm and retail offering through The Drive at AKOYA complement this residential focus and add another dimension to the exciting, modern lifestyle we are trying to create for our customers.

Against the backdrop of economic growth and a stabilisation of real estate prices in Dubai, we believe that DAMAC will continue to benefit from customer demand for our product.