Union Properties reports a record quarterly loss of Dh1.1bn as costs rose after property prices slumped.
Union Properties posts record quarterly loss of Dh1.1bn
Union Properties, the Dubai-based developer, reported record quarterly loss as costs rose after property prices in the Persian Gulf emirate slumped.
Third-quarter loss widened to Dh1.1 billion (US$289 million) from Dh452m a year earlier, the company said in a statement to the Dubai bourse today. Direct costs jumped to 726 million dirhams from 415 million dirhams.
Dubai's property market went from being one of the world's best-performing to one of the worst following the global credit crisis three years ago, with home prices slumping 64 percent since the mid-2008 peak, according to Deutsche Bank AG estimates.
Emaar Properties, Dubai's biggest developer, reported a 34 percent decline in third-quarter profit as revenue declined and property deliveries slowed.
Union Properties has been in discussions with lenders to
restructure debt, Khalid Bin Kalban, the chairman, said in June. The developer is repaying debt this year with the Dh1.1bn dirhams it raised from selling the Ritz Carlton Hotel and another Dh900m from property sales to repay debt in 2011, he said.
Union Properties closed 2.2 percent lower at 30.6 fils in
Dubai yesterday. The stock has declined 16 percent this year,
valuing the company at Dh1.03bn.