S&P upgrades Damac Real Estate

S&P said it upgraded its ratings for Damac Real Estate Development Ltd. and its senior unsecured sukuks to BB from BB-.

The agency said it forecasts Damac will post more than $2.2 billion-$2.4 billion in 2023 revenue with an EBITDA margin of near 40%.

“Damac's operating cash generation will remain strong 2024-2025. We estimate Damac generated $1.5 billion-$1.8 billion in operating cash flows in 2023, benefitting from working capital releases after the group received material prepayments on new sales, accelerated cash collections on new projects with 100% cash collected on or before handover, as well as sizable residual payments on older projects being handed over. Through its strong cash flows, we believe Damac will continue to invest in more stable and profitable rental assets,” S&P said in a press release.

The outlook is stable.

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