May 02 2011 |
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Write-downs decline cuts DIFC Investments losses
By Issac John DUBAI - DIFC Investments LLC, a unit of the Dubai International Financial Centre , said on Sunday that its 2010 loss narrowed to $274.7 million from $561.4 million a year ago.The company cited a decline in write-downs and a return to profit by Dubai Aerospace, in which DIFC has a stake, as reasons for the improved performance.
In a statement to Nasdaq Dubai, DIFC Investments said write-downs on property had declined and that would complete the sale of its Smartstream Technologies, which it acquired in 2007.
DIFCI also plans to complete the sale of high-end Kuwaiti fashion retailer Villa Moda in 2011 having indicated its intention to sell the company in 2009.
DIFC Investments ' financial statements showed that it has extended repayment of two $500 million loans due to the government of Dubai.
The company said it would execute a "selected divestment plan and expects further value improvement in various funds and assets" in 2011, if global markets improve.
DIFC Investments owns and operates office buildings in the tax-free Dubai International Financial Center .
Income from investment properties and fees fell four percent to $146.3 million, while sales of goods dropped 8 percent to $656.6 million, it said.
The company said in December it would cut rents and operational costs by as much as 50 percent from January to encourage companies to expand following the financial crisis. Occupancy in the center continues to be 95 percent, it said.
DIFC Investments booked a loss on the fair value of investment properties of $374.3 million in 2010 compared with $438.6 million a year ago, according to the statement. It had a gain of $5 million from investments in joint ventures and associates after a loss of $85.3 million a year ago.
The company, which has about $3 billion of debt, had its outlook changed to negative by Standard & Poor's in August as its plan to raise $1 billion from asset-sales by the end of 2011 faces uncertainties. The company also has a $1.25 billion Islamic bond due in June 2012.
© Khaleej Times 2011
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