(Correcting that Dar Global swung to a pretax loss.)
Dar Global PLC on Thursday said its half-year revenue fell, following delayed revenue recognition for its projects under construction.
The London-based luxury real estate developer and representative of Dar Al Arkan Real Estate Development Co PJSC said it swung to a pretax loss of $16.0 million in the six months to June 30, from a pretax profit of $20.8 million a year before. Revenue plunged 59% to $44.5 million from $108.4 million.
Dar Global said: ‘Despite strong ongoing sales for key projects, including Les Vagues (building 1) and Aida phase 1, revenue has not been recognised in the first half of 2024 as these projects did not yet meet the construction milestones to enable revenue recognition to commence. We expect some of these new projects to achieve the required construction milestones during the second half of this year.’
Les Vagues is the company’s first residential project in Qatar, featuring 303 seafront one, two and three-bedroom apartments, whilst Aida is a project in Oman focused on a 4.4 million square metre mixed-use development on the clifftops outside Muscat.
Cost of revenue fell 77% year-on-year to $14.6 million from $62.7 million, whilst selling and marketing expenses were down 48% to $6.8 million from $13.2 million. General and administrative expenses, on the other hand, rose 33% to $17.1 million from $12.9 million.
Chief Executive Ziad El Chaar said: ‘We have had a promising start to the year as Dar Global continued to deliver luxury real estate developments for our affluent clientele across the globe. Demand for our newly launched and existing products has remained strong with cumulative sales totalling nearly $1.3 billion, up from circa $800 million in the first half of 2023.
‘Overall, as expected, revenue and profitability for the first half of this year were subdued as some of our early stage developments approach revenue recognition milestones. As these milestones are met we expect the second half of 2024 and full year 2025 to be positively impacted as a result. We are pleased to therefore reiterate our target of delivering at least $700 million of revenue in aggregate across 2024 and 2025 whilst maintaining a similar sales rate and overall [earnings before interest, taxation, depreciation and amortisation] margin to what was delivered in 2023. Our current revenue expectation for full-year 2024, as we approach these milestones, is in the range of $210 million and $250 million.’
Shares in Dar Global were untraded at $4.38 in London on Friday morning.
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