DUBAI:Union Properties said on Tuesday it swung to net profit in the first half to June due to non-recurring and exceptional items.
The company posted half-year profits of Dh207.4 million to Dubai Financial Market on Tuesday, compared to a loss of Dh2.2 billion over the first half of 2017.
“If we take a closer look at their H1 financials, we would find that the main items that boosted profits are nonrecurring and exceptional items that are noncore, Gain on fair value of investment properties and the Gain from sale of JV. After excluding these items you would find a clear loss on their sheets from operational income,” Issam Kassabieh
Senior Financial Analyst – Research Department at Menacorp told Gulf News. The company gained Dh125 million from disposing off a joint venture.
“Union Properties results indicate that the company is still far from achieving a promising result that would regain investors’ trust following last year’s audit nightmare,” Kassabieh said.
Revenues for the half were Dh591.6 million, compared to a decline of Dh1.67 billion in H1 2017 — the result of a reduction in value of its investment property of Dh2.1 billion — according to the Dubai-listed firm’s financial report. Profits for the second quarter were Dh24.7 million, from revenues of Dh261.9 million.
In January the firm sold its investment in Emicool to Dubai Investments for Dh500 million, saying it would reinvest the money as part of a new strategic investment approach.