Dubai's Union Properties Q4 loss increases fivefold

Developer saw net loss of AED778m in period, hit by tough market conditions
Dubai's Union Properties Q4 loss increases fivefold
Real estate UAE
By Reuters
Tue 15 Feb 2011 04:21 PM

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

website.

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

assets.

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

projects.

The developer's shares closed unchanged from the previous

day earlier on Tuesday.

($1=AED3.673)

 

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