106% rise in net of Union Properties

Dubai-listed Union Properties' second-quarter net profit surged 106 per cent to Dh317.7 million ($86.52m), beating analysts' forecasts.

Union Properties posted a half-year net profit of Dh556m, up 88 percent from a year earlier, the company said in a statement, without giving quarterly figures. Second-quarter earnings were calculated based on Reuters data.

The earnings exceeded forecasts in a survey last month that ranged from Dh150m to Dh187m.

The company's half yearly revenues increased 60 per cent to Dh1.86bn, the statement said. Its stock, up 21.4 per cent this year to last week's close, dropped 5.6 per cent yesterday before the results announcement.

Net profit for the first quarter of 2008 grew by 70 per cent to Dh238m over the corresponding figure in 2007. The quarterly results included gain on sale of investment properties amounting to Dhs154m in line with the company's strategy to offload aged assets and change the structure of its investment properties portfolio, it said.

No gain on valuation of investment properties was booked during the first quarter of 2008. Total assets and shareholders' equity continued to grow and stood at Dhs12.6bn and Dhs5.5bn respectively as of March 31, 2008, growing by 48 per cent and 17 per cent compared to March 31, 2007.

Development and investment properties comprised 63 per cent of total assets and stood at Dhs7.9bn at the end of the first quarter of 2008, growing 61 per cent over the corresponding period in 2007.


Statistics

60%: increase in half-yearly revenues to Dh1.86bn was reported by the firm

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