Dubai: Union Properties recorded a sharp drop in nine-month net profits for 2021, totalling Dh1.36 million and quite a significant decline from the Dh348.77 million last year. The Dubai developer's stock, which had been suspended after delays in the publication of the results, will now start trading again.
The developer slipped into the red in the July to end September phase, with losses of Dh31 million – as against the Dh509 million profit it turned out last year during the same period. The biggest difference between the two set of results is the sharp dip in ‘gain on fair valuation of investment properties’, which in current nine-month period was Dh78.85 million as against Dh821.99 million a year ago.
"The Group would like to highlight that these accumulated losses are predominantly due to variations in the valuations of its real estate portfolio (marked to market)," the developer said in a statement. "These accumulated losses could potentially be recouped in the event of an increase in the prices of lands in Dubai."
Will investors turn their ire on UP’s stock. Before being suspended last week, the stock had on two days dropped by nearly 10 per cent, as investors digested the news about the UP chairman coming under detention. Plus, there was an earlier reveal that the developer is facing federal-level investigation into alleged financial misconduct relating to the disposal of assets done last year.
Non-current asset shrink
The company’s total ‘non-current’ assets declined to Dh4.91 billion from Dh5.22 billion. But if the ‘current’ asset base was also counted, total assets would be Dh5.94 billion compared with Dh5.94 million from last year.