Union Properties' third-quarter net loss more than doubled as the struggling developer booked additional provisions amid a sharper drop in the valuation of its properties.
The Dubai-based firm posted third-quarter loss of AED1.06bn ($288.6m) compared with a loss of AED451.8m made reported during the same period in 2010. It booked AED1.17bn as impairment provisions on the valuation of its properties in the quarter.
EFG-Hermes estimated that the company would make a profit of AED37.26m.
Third-quarter revenues stood at AED955m, up from AED545.2m one year earlier.
Real estate firms in Dubai were hit hard by the global financial crisis in 2008 with property prices dropping by about 60 percent from its peak.
The company said it has obtained a AED2.75bn loan facility from a consortium of banks, including one of its largest shareholders, to complete ongoing projects. As a result, Union Properties expects to meet its financial commitments going forward.
Union Properties had said in June that it would repay AED2bn of debt this year and will renegotiate terms for its other loans for banks.
The company's shares are down 16 percent year-to-date.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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