Dubai's Union Ppties Swings to FY2012 Profit, But Revenues Drop

Wednesday, Feb 20, 2013

(This article was first published on Tuesday.)

DUBAI (Zawya Dow Jones)--Dubai-based Union Properties (UPP.DFM) swung to a profit in 2012, despite a sharp drop in revenues, as gains in the valuation of properties boosted its bottom line.

The company made a 12-month net profit of 175.8 million U.A.E. dirhams ($48 million), compared with a net loss of AED1.57 billion in 2011, UP said in a brief statement posted on the Dubai bourse website.

While the company made an operating loss of AED31.9 million last year, its earnings were boosted by a gain on valuation of properties, according to the statement.

Its revenues fell to AED1.64 billion in 2012, from AED4.92 billion in the year before.

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 there are signs that the real estate market is picking up now, as Dubai's economy strengthens on the back of trade and tourism and concerns about its ability to service its debt ease.

The company's total assets at the end of 2012 amounted to about AED9.1 billion, compared with AED9.2 billion a year earlier.

UP shares closed 1.6% lower at AED0.436 Monday.

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

(END) Dow Jones Newswires

20-02-13 0344GMT