Dubai: Dubai-based developer, Union Properties posted a third straight quarterly loss Monday, sending its shares lower.
The loss was mainly due to the fact that the developer had to make significant provisions for contracting and property valuation.
Union Properties' closing price fell 2 per cent to Dh0.49 on Dubai's bourse yesterday.
According to Reuters, the developer suffered a third quarter loss of Dh148 million.
According to the DFM website, the company reported a net loss of Dh498 million for 2009 compared with a net profit of Dh763.1 million in 2008. It did not provide a breakdown of its results.
Revenues
In company results released Monday, Union Properties posted Dh4.4 billion in revenues for 2009.
"Operationally the company seems to be doing well with Dh4.4 billion of revenues booked during the year mainly on property delivery in Motor City.
"The loss recorded was largely driven by impairments of rental assets and provisions on its contracting business, which came as no surprise as it was in line with the company's guidance," said Majid Azam, Mena real estate analyst at HC Securities.
The company's total shareholder equity was valued at Dh5.5 billion.
After suffering poor results in the first and second quarters of 2009 and making a net loss in the third quarter, Khalid Bin Kalban, chairman of Union Properties, said in an earlier interview with Gulf News that the company might take some losses in the fourth quarter,
"As a result of the market situation, we do see that the company will end up seeing some loss in the fourth quarter of 2009, however, because of the ongoing handover activity, we expect the company will show some improvement in the core business."
Kalban said of the firm's Dh6.5 billion debt, Dh2.8 billion had been rescheduled for payment to 2011 from 2009, adding the remainder was longer-maturing debt.
Union Properties, one of the United Arab Emirates' leading property investment developers, started as Union Property Private Limited in 1987 and floated as a public limited company in 1993.
Among the developments of the company are Uptown Motor City, a range of villa projects throughout Dubai, Lime Stone House, Green Community and the 80-storey Index tower.
Performance
- Dh498m 2009 net loss according to DFM website
- Dh4.4b 2009 revenue according to company
