Damac Properties (Damac) has just reported its financial results for 3Q16. Contracted sales came in at AED1.7bn (-9.9% Y-o-Y, +5.0% Q-o-Q, exactly matching EFGe). Revenue came in at AED1.75bn in 3Q16 (-13.4% Y-o-Y, -0.3% Q-o-Q, EFGe: +2.8%), with the contribution of land sales at 40%, higher than the usual (3Q15: 24%, 2Q16: 18%), which we attribute to Damac’s recent villa launches. EBIT came in at AED910mn (-11.6% Y-o-Y, +2.2% Q-o-Q, EFGe: +14.3%); net income at AED902mn (-11.7% Y-o-Y, +1.7% Q-o-Q) coming in 13.1% higher than expected, on the back of: i) lower-than-expected S,G&A; and higher-than-expected income from cancellations (3Q16: AED149mn, EFGe: AED100mn). 9M16 contracted sales totalled AED5.3bn (-24% Y-o-Y), revenue AED5.1bn (-24.3% Y-o-Y), EBIT AED2.8bn (-22.8% Y-o-Y) and net income AED2.8bn (-22.7%). (Company disclosure, Mai Attia, Sara Boutros)   DAMAC (DU): AED2.19 as of 6 November, Rating: Neutral, FV: AED2.30/share, MCap: USD3,610mn, DAMAC UH / DAMAC.DU