Dubai's Union Ppties Posts 1Q Pft on Valuation Gains as Sales Fall

Wednesday, May 15, 2013

DUBAI (Zawya Dow Jones)--A gain on valuation of properties helped Union Properties (UPP.DFM) post a profit in the first quarter after sales fell sharply, the Dubai-based company said Wednesday.

Its net profit in the three-month period was 21.9 million dirhams ($5.97 million), down 2.2% from AED22.4 million a year earlier, according to UP's financial statements posted on the Dubai bourse website.

Revenues for the quarter were down 31% on year to AED308.4 million as property sales fell 84% to AED25.8 million.

But a valuation gain of AED30.5 million on properties boosted its bottom line, UP said.

UP, in which Emirates NBD (EMIRATES.DFM) is the single largest shareholder, is among several Dubai-based real estate companies that were forced to re-assess their plans after being hit hard by a sharp fall in the emirate's property prices in the wake of the global financial crisis in 2008.

But the real estate market is seeing a rebound as Dubai's economy strengthens on the back of trade and tourism and concerns about its ability to service its debt ease.

UP shares last traded 2% lower at AED0.485 Wednesday.

Write to Nikhil Lohade at nikhil.lohade@dowjones.com

(END) Dow Jones Newswires

15-05-13 0753GMT