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Dubai-listed real estate developer Union Properties’ accumulated losses have reached 2.863 billion dirhams ($779.4 million), according to a disclosure on Thursday.
The losses as of the third quarter of 2023 represent 66.75% of the paid-up capital, the company said in a bourse filing on the Dubai Financial Market (DFM).
The company said the losses are mainly a product of significant provisions of the following:
· Fair value loss of AED2.076 billion related to investment properties recorded in the fiscal year 2017
· Fair value loss of AED1.109 billion related to investment properties recorded in the fiscal year 2021
· Loss on disposal of an associate of AED250 million recorded in the fiscal year 2020
· Losses and impairments from financial instruments at FVTPL amounting to AED337 million
· Disposal of assets to related parties amounting to AED62 million in 2020 and AED45.5 million in 2021
· Provisions amounting to AED90.5 million against advances to contractors in 2021
Union Properties had previously presented a plan for handling the accumulated losses.
In its latest disclosure, the company highlighted that it has achieved accumulated profit of AED37.4 million from January to September 2023.
In 2022, the developer completed 60% of the debt restructuring process. It has also achieved 65% of its plan to improve operational efficiency, citing that the company has managed to preserve its book value of AED0.456 per share as of December 31, 2022.
(Writing by Cleofe Maceda; editing by Brinda Darasha)
