Developer wrote down value of assets by Dh2.8bn earlier this year
Union Properties posts Dh45m loss as construction revenue slumps
Union Properties, the developer primarily known for its projects in Dubai’s Motor City, posted a Dh45 million loss for the third quarter, as construction revenues dropped by more than a half.
The loss, reported on the Dubai stock exchange, was an improvement on the Dh2.3 billion loss posted in the previous quarter, but down from a Dh32m profit for the third quarter of 2016.
Revenues from contracting and other operating activities - the company’s largest revenue generator - fell 56 per cent year-on-year to Dh82m. Property management and sales revenue declined 15 per cent year-on-year to Dh18m.
Union Properties announced in August a Dh2.8bn write-down of the value of its assets by a new management team in its second-quarter results, leading to its worst ever quarterly loss for the three months to the end of June.
A new chairman and vice-chairman were appointed in May after an impromptu board reshuffle saw the resignation of three directors, including the chairman Khalid bin Kalban. A new chief executive, Ahmed Khouri, was appointed in July.
The Union Properties chairman Nasser bin Yousef described the actions taken in the second quarter as "a one-time charge for the accounting irregularity by the previous management.”
The company’s shares opened 1 per cent lower in early Tuesday trading.