Dubai's Union Properties Swings to 2Q Net Pft of AED83.6 Mln

Monday, Jul 30, 2012

DUBAI (Zawya Dow Jones)--Dubai-based Union Properties (UPP.DFM) on Monday posted a second-quarter net profit of 83.6 million U.A.E. dirhams ($22.8 million), compared with a loss of AED520.8 million a year earlier, reflecting improved sentiment in the real estate rental and ownership markets.

The company made a net profit of AED106 million in the first six months of the year versus a loss of AED439 million in the year before period, UP said in a statement posted on the Dubai bourse website. It didn't provide a quarterly result and its earnings for the three-month period have been calculated using Zawya.com data.

"With the real estate sector on the path of recovery, together with improved economic indicators in Dubai and the U.A.E., Union Properties is currently evaluating various mid-sized development projects offering shorter turn-around times and reasonable profitability and incremental cash inflows," the company said.

UP, in which Emirates NBD owns a 47.6% stake according to Zawya.com, said revenue in the first six months of 2012 reached AED1 billion, sharply down from AED2.25 billion a year earlier when the company was recognizing revenue on sale of Index Tower and Limestone House in DIFC.

UP shares were traded up 3.2% at AED0.392 Monday.

-By Tahani Karrar-Lewsley, Dow Jones Newswires; +971-4-446-1686; tahani.karrar@dowjones.com; Twitter: @ZDJnews

(END) Dow Jones Newswires

30-07-12 0754GMT