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Wed 25 Feb 2009 09:20 AM

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Union Properties posts $10.3m loss for Q4 2008

Lower land sales cited reason for losses due to slowdown in Dubai real estate sector.

Dubai-based Union Properties made a fourth quarter loss of AED37.6m ($10.32m) due to lower land sales, it was reported on Wednesday.

Higher margin land sales made up a smaller share of total revenue in 2008, while lower margin contracting work rose.

The company made a AED500m provision against potential loss on contracting activity amid a sharp slowdown in the emirate's real estate sector.

"The decrease in land sales increased the contribution of contracting and other operating activities in the revenue mix for 2008, which drove the overall 2008 margin to drop compared to 2007," it said.

Contracting activities continued to be the main contributor to revenues, the firm added.

Full-year net profit rose 12 percent on the year after provisions to AED763.1m, the company said in a statement without giving quarterly figures.

Fourth-quarter earnings were calculated based on Reuters data.

Revenues for the year rose 24 percent to AED3.64bn, it said.

Union Properties' board proposed the distribution of 10 percent bonus shares, the company said in a separate statement.

Profit for the fourth quarter 2007 was AED213m. (Reuters)

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