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Union Properties Reports Second Quarter Loss of Dh227.95 Million

DUBAI — Union Properties posted a second quarter loss of Dh227.95 million, a reversal from its year ago earnings of Dh317.71 million, as the hefty declines in property prices in Dubai due to the global economic slump have sunk the value of its assets and investments.

For the first half, Union Properties incurred a net loss of Dh198 million, this compares to a net profit of Dh556.1 million during the same period in 2008. With a softer property market, the company’s revenue for the first half was little changed from a year earlier
 at Dh1.864 billion.

The property company said its first half losses on the the valuation of its existing investment properties amounted to Dh303.8 million, compared to last year’s gains of Dh556.1 million. Union Properties said its property sales and management activities contributed Dh886 million as it handed over completed properties at MotorCity, while its hospitality and other operating businesses plunked in another
 Dh253 milion.

The company’s total liabilities for the first six months stood at Dh12.296 billion, higher than last year’s Dh10.647 billion. Union Properties’ construction units include district cooling firm EMICOOL and mechanical, electrical and plumbing unit Thermo.

In the first quarter, company’s net earnings plunged by 87.4 per cent from a year earlier to Dh30 million, while revenue fell by 39.4 per cent to Dh572 million.

rocel@khaleejtimes.com