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 interim results for the nine months and quarter ending 30 September 2014.

FINANCIAL HIGHLIGHTS

Recognized revenue grew by 98% to $1,569.2 million in 9M 2014 (9M 2013: $792.5 million) comprising development income attributed to the completion and handover of 2,581 units across 7 projects in addition to the sale of land, which generated revenue of $600.5 million (38% of total 9M 2014 revenue). Projects completed during the 3Q 2014 were The Vogue, Capital Bay and two buildings of Lincoln Park. 3Q 2014 revenue grew by 259% to $577.3 million (3Q 2013: $160.6 million).

Gross profit for 9M 2014 increased by 84% to $909.5 million (9M 2013: $493.5 million), with a 65% growth in net profit to $687.2 million for the same period (9M 2013: $416.4 million); both driven by the growth in recognized revenues. Gross profit in 3Q 2014 grew by 274% to $340.0 million against $90.8 million in 3Q 2013, with net profit for the same period also increasing by 166% to $224.3 million (3Q 2013: $84.4 million).

Gross margin remained strong at 58.0% for 9M 2014 and 58.9% in 3Q 2014.

Operating profit increased by 65% to $688.1 million for 9M 2014 (9M 2013: $416.8 million). This reflects the growth in general and administrative expenses to $215.3 million (9M 2013: $139.2 million); as well as the increase in brokerage and commissions to $42.4 million (9M 2013: $29.6 million) due to the increase in booked sales and number of staff as business levels expand.

Cashflow generated from operations grew to $741.2 million for 9M 2014 (9M 2013: $238.3 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 $4,862.8 million as at 30 September 2014, representing growth of 60% compared to 31 December 2013, primarily led by an increase in cash and bank balances and increase in development properties.

Development properties stood at $2,301.4 million, as at 30 September 2014, an increase of $368.7 million (19%) 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 9M 2014.

Shareholders equity increased by 80% from 31 December 2013 to $1,184.3 million at 30 September 2014 as a result of net profit earned during the period adjusted for dividend distributed during the year.

Net cash position stood at $952.0 million as at 30 September 2014 (31 December 2013: $492.9 million), net of gross debt of $651.0 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 $1,890.5 million as at 30 September 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 in 9M 2014.

Interim Dividend was declared by Board based on 1H 2014 financial performance. This was paid out in August 2014 amounting to $162.0 million cash outflow.

OPERATIONAL HIGHLIGHTS

Booked sales for 9M 2014 increased 51% to $2,400 million from $1,592.4 million in 9M 2013. Sales were mainly driven by launch of AKOYA Oxygen and along with healthy sales in existing in-progress projects by DAMAC.

947 units were completed and delivered during 3Q 2014, resulting in a total of 2,581 units delivered during 9M 2014. Estimated unit deliveries for 2014 remains in line with guidance at c.4,500.

Good construction progress is being made across the portfolio. At DAMAC Heights in Dubai Marina, construction is completed to level 42, with construction completed for Upper Crest and The Distinction to level 43 and level 32 respectively. At DAMAC Towers by Paramount (almost 2,000 keys) all upper ground floor slabs for all four towers are cast and the core walls are up to level 16.

At AKOYA by DAMAC, main works on villas and low rise has been awarded and construction is progressing well across the site. The Trump International Golf Club is also progressing well; sand-capping of all golf holes is completed and 12 holes have been grassed. The golf course is still on track to be fully grassed by Q1 2015.

At AKOYA Oxygen, the lead consultant has been appointed for the design and infrastructure of the first 1,000 villas. The Sales Centre structure is being installed on site and is expected to be completed by the end of 2014.

Significant operational developments during the third quarter include:
The launch of AKOYA Oxygen, which will be the biggest green master plan development in Dubai, spreading over 55 million sq. ft., with a TRUMP World Golf Club, and luxury villas
The extension of The Drive at AKOYA to 2.5km, from 1.3km, making it the regions longest outdoor retail strip
Ongoing marketing and sales of low- and high-rise on The Drive at AKOYA
The announcement of Paramount Hotel Downtown Dubai, on Sheikh Zayed road, which will comprise luxury suites and apartments

Hussain Sajwani, Executive Chairman and Chief Executive Officer of DAMAC, commented: This is another solid set of financial results, which show significantly improved profitability that has been driven by an increase in revenues as a result of strong sales activity and the completion and handover of a number of key projects. In the first nine months of 2014 we have continued to deliver on our four-phased strategy of Buy, Design, Sell and Build, whilst continuing to maintain a robust balance sheet, impressive margins, and ensuring our developments meet the high quality customers have come to associate with the DAMAC name.

The launch of AKOYA Oxygen has added another iconic project to our exciting development portfolio. In August, the first release of houses for the project sold out in record time, illustrating the high levels of demand for lateral luxury living, combined with top-class leisure facilities and open spaces, as well as for our prime residential apartments in the heart of the city.

Our other master development, AKOYA by DAMAC, is making good progress, and last month we were very pleased to announce the extension of The Drive at AKOYA to 2.5km after receiving a positive response from customers. This will make it the longest outdoor shopping and entertainment option in Dubai and the region.

* All Dollar figures in this statement are United States Dollars