Union Properties posts Q3 profit
Dubai, October 31, 2012
Union Properties posted a quarterly profit on Wednesday despite a decline in revenue, as the real estate developer stayed away from new projects to focus on existing developments.
The Dubai-listed firm made a third-quarter net profit of 50 million dirhams ($13.6 million) compared to a loss of 1.06 billion dirhams in the same period of 2011, according to a Reuters calculation.
The company, which reached a 3.8-billion dirham debt deal with major shareholder Emirates NBD earlier this year, did not provide quarterly figures. Profit for the nine months to Sept. 30 was 156 million dirhams versus a net loss 1.5 billion dirhams a year earlier, the firm said in a statement.
The increased profit reflected "improved market sentiment in the real estate sector", it added.
Union Properties, which has not undertaken new development work in recent years, said its revenue for the nine months dropped to 1.3 billion dirhams from 3.2 billion a year ago. The drop occurred because it booked most revenue from selling its Index Tower and Limestone House developments in 2011, it said.
The company was one of many property firms in Dubai that were hit by a property market collapse in 2009-10, which saw home prices plunging by more than half and a large number of projects being put on hold. Recovery has been gradual as heavy supply weighs on the emirate's market.
Dubai's largest developer Emaar Proeprties reported a 4.7 percent drop in third-quarter earnings last week.
Union Properties' total consolidated bank debt fell 41 percent to 3.4 billion dirhams at the end of the third quarter from 5.8 billion dirhams a year earlier.
In January, the company said it would transfer assets worth 1.1 billion dirhams to Emirates NBD as part of the debt deal, while its remaining liabilities to the bank would be extended until 2017.
The company's shares were up 2 percent after the earnings announcement. - Reuters
More Construction & Real Estate Stories
- New Tekla software accelerates information flow
- Damac unveils first Trump Estates in ME
- GFH in key London property placement
- Green Valley unveils new UAE, Turkey projects
- Jotun colour collection tracks new trends
- RAK Properties to distribute $27.2m profit
- Top construction firms head to Bahrain
- Investors pull out of $65m Bahrain project
- Projects stalled in Bahrain due to 'mismanagement'
- Emaar rules out plans for new tall tower
- Barwa net profit surges 27.3pc
- RAK Properties adds new villas to Flamingo project
- Saudi launches housing scheme to ease shortage
- R&M wins Oman residential project contract
- Asian skyscraper prices tower over rest of the world
- Tamleek opens new office in Dubai
- $29m allocated for Bahrain drainage projects
- Indian group plans $300m Bahrain Bay investment
- Drake and Scull awards key supply contract
- FCC wins $702m Doha metro line contract
- SPF Realty sees Dubai project success
- Abu Dhabi set for big property show
- Aldar working on $1.5bn UAE housing projects
- Gulf Finance House to start $3bn Tunisia project
- Abu Dhabi to see 10pc surge in new homes
- Saudi construction sector booming on new contracts
- Emaar offers 330 apartments in MBR City
- Dubai Design District sees big demand
- HUGE DEAL: Arabtec inks $40bn Egypt housing project
- Galfar ex-CEO gets 15 years' jail over bribes