Dubai's Union Properties'
fourth-quarter loss jumped fivefold due to losses on
valuation of properties, falling far short of an analyst
forecast, as the developer struggles in tough market conditions.
The third largest developer in Dubai suffered a net loss of
AED778.1m ($211.8m) in the fourth quarter,
compared with a loss of AED148m in the same period
last year, Reuters calculations showed.
It did not report a fourth-quarter earnings figure which
Reuters calculated from previous financial statements.
The loss fell well short of an analyst forecast of AED219.6m profit in a Reuters survey in January.
Union Properties fell into the red for the year by AED1.53bn ($416.5m), compared with a loss of 498
million in 2009, it said in a statement on Dubai's bourse
Revenues for the year fell to AED2.87bn from AED4.39bn while total assets fell to AED14.94bn from AED17.47bn, the developer said.
Property firms in the UAE have suffered
from poor earnings results in the fourth quarter, with Dubai's
Emaar Properties reporting a 62 percent drop in profit from
impairments and provisions.
Abu Dhabi's largest developer by market value Aldar
Properties reported its largest-ever quarterly loss
earlier in February as it booked massive writedowns on its
Union Properties finalised the sale of its Ritz Carlton
hotel in Dubai for AED1.1bn in November last year. It
used the proceeds to reduce debt and complete remaining
The developer's shares closed unchanged from the previous
day earlier on Tuesday.
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