Thursday, Feb 02, 2012
DUBAI(Zawya Dow Jones)--Dubai-based Union Properties said Thursday its full year net loss widened to 1.57 billion U.A.E. dirhams ($427 million), from AED1.53 billion in the year before, as the value of its property portfolio deteriorated.
"Total assets reduced to AED9.1 billion while shareholders equity decreased to AED2.4 billion. The company made an operating profit of AED196 million and net loss after provision for loss on valuation of properties of AED1.6 billion," Union Properties said in a brief statement posted on the Dubai Financial Market website.
Marwan Shurrab, chief trader at Gulfmena Investments in Dubai said: "There is a big discrepancy between revenues and profit, it's most probably inline with asset sales to Emirates NBD."
Last month, Union Properties confirmed it has struck a deal with major shareholder Emirates NBD regarding 3.8 billion U.A.E. dirhams ($1.03 billion) in debt. The firm's Chief Executive Khalid bin Kalban told local Al Bayan newspaper that Union Properties will transfer property assets worth AED1.1 billion to Emirates NBD, which owns 47.6% of the developer.
-By Tahani Karrar-Lewsley, Dow Jones Newswires, +9714 446 1698 tahani.karrar@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
02-02-12 0545GMT
