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Wed 15 May 2013 08:57 AM

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Dubai's Union Properties sees drop in Q1 net profit

Developer reports 2.2% fall in first three months as revenue from home sales plunges

Dubai's Union Properties sees drop in Q1 net profit

Dubai developer Union Properties reported a 2.2 percent drop in first-quarter net profit on Wednesday due to a slump in housing sales.

The Dubai-listed firm made a first quarter net profit of AED21.9m ($5.96m), it said in a bourse statement, slightly lower than AED22.4m it posted in the corresponding period last year.

Revenue from sales of homes and property management plunged to AED25.8m from AED159.8m in the prior-year period.

However expenses reduced to AED24.6m from AED35.1m in the year ago period.

The company was one of many property firms in Dubai that were hit by a property market collapse in 2009-10, which saw home prices plunging by more than half and a large number of projects being put on hold.