Union Properties’ third-quarter net loss tripled to Dh451.8 million compared to Dh152.3m in the same period a year ago as losses on property valuation went up significantly.
Revenues for the quarter fell to Dh545.2m from Dh1.3bn, while loss on valuation of properties rose to Dh420m from Dh166.8m, it said.
Revenue for nine months to September 30 fell 34 per cent to Dh2.1bn, compared to Dh3.2bn for the same period last year. Total assets and shareholders’ equity stood at Dh15.9bn and Dh4.7bn, respectively, as of September 2010.
The company has net current liabilities of Dh811m, which include short-term bank borrowings amounting to Dh325m and the current portion of long-term bank loan amounting to Dh1.17bn. Total consolidated bank debt (short and long term, including that of subsidiaries) at the end of Q3 2010stood at Dh6.5bn, implying an overall consolidated debt/assets ratio of 41:59.
Last week, the developer announced the sale of its Ritz Carlton hotel in Dubai for Dh1.1bn. Proceeds from the sale will be used to reduce debt and complete remaining projects.
Handover of completed properties continues primarily at Motor City, with sale proceeds progressively settling payments of bank loans and contractors’ dues, the company statement said.
The company is focusing on the delivery of its two properties in the Dubai International Financial Centre (DIFC) — The Index Tower, a mixed use high-end residential and commercial building, and The Limestone House, which comprises the 5-star Ritz Carlton hotel and upscale residential units, before the end of the current financial year