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Union Properties on Tuesday reported Dh158 million in net profits during the first nine months of the year, marking an 81 per cent drop from the Dh833.9 million recorded in the same period last year.
In the third quarter, the Dubai-based real estate developer saw Dh110.7 million in net profits — down from the Dh127.9 million recorded in Q3 2014.
This makes the company’s net profits in the third quarter of this year more than twice as much as those in the first six months (Dh47.5 million). The results during the first half of 2015 represent a 93 per cent drop from the Dh707 million in profits reported in the first six months of 2014.
Meanwhile, property management and sales revenues reached Dh60.5 million in the first nine months of the year, marking a 27 per cent drop from the Dh83.5 million recorded in the same time last year.
Union Properties’ financial statement, which was posted on the Dubai Financial Market (DFM) where the company is listed, also showed a drop in total income in the first nine months to reach Dh904.3 million — down from Dh1.7 billion in the same time last year.
The company’s assets saw a slight decrease to Dh8.28 billion recorded on September 30, 2015 compared to Dh8.38 billion recorded on the same date in 2014.
According to the financial statement, Union Properties sold various investment properties during the first nine months of the year with a carrying value of Dh526.9 million (compared to Dh312.4 million in the same period last year), resulting in a net gain of Dh68 million (compared to Dh115.9 million in the same period in 2014).
Looking at the company’s business segments, Union Properties recorded revenues of Dh60.5 million from real estate property management and sales in a nine month period, and Dh380.8 million from construction.
The drop in results brings the company’s earnings per share down to Dh0.043 for the period from Dh0.225 in the same period in 2014.
In August this year, Union Properties reported Dh19.4 million in net profits for the second quarter of this year, marking a 96 per cent plunge from the Dh527 million reported in Q2 2014.
In May 2015, the company also reported falling net profits, which stood at Dh28.1 million in the first quarter of the year, representing an 84 per cent decline from the Dh179 million recorded in the first quarter of 2014.
Source: Sarah Diaa, Staff Reporter, gulfnews.com