Union Properties posts profit of Dh106m in H1

Union Properties on Monday declared a net profit of Dh106 million for the first six months of the year compared to a net loss of Dh439 million for the same period last year.

By Abdul Basit

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Published: Tue 31 Jul 2012, 10:36 PM

Last updated: Tue 7 Apr 2015, 11:33 AM

The property developer, which reached a Dh3.8 billion debt deal with major shareholder Emirates NBD earlier this year, did not disclose it quarterly numbers.

The company had second-quarter net profit of Dh83.6 million, according to Reuters calculation based on financial statements. That compares to a loss of Dh520.79 million a year-ago.

“With the real estate sector on the path of recovery, together with improved economic indicators in Dubai and the UAE, UP is currently evaluating various mid-sized development projects offering shorter turn-around times and reasonable profitability and incremental cash inflows,” the company said in a statement posted on Dubai Financial Market website.

Revenue for the six months to 30th June 2012, declared at Dh1.004 billion compared to ADh2.249 billion for 6 months to 30th June 2011, when UP was recognising revenue on sale of Index Tower and Limestone House in DIFC.Despite no new development activities undertaken in the last few years, the company said it continues to generate operating profit, which for the six months to June 30 2012 was Dh6 million.

Net profit for the first six months of 2012 compared to net loss last year is a reflection of improved sentiments in the real estate rental and ownership markets.

Total consolidated bank debt at the end of the first half stood at Dh3.8 billion down from Dh6.2 billion for same period last year, an almost 40 per cent reduction in leverage. This was achieved by focused sale of assets and sale of units in the Index Tower and Limestone House.

abdulbasit@khaleejtimes.com



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