Q2 2017 asset review leads Dubai's Union Properties to $626m net loss
Chairman Nasser Butti Omair bin Yousef says 2017 was "a major turning point" for the company, adding that a "comprehensive growth strategy" has been mapped out for the future
Dubai-listed Union Properties announced a net loss worth $626.2m (AED2.3bn) for 2017.
Much of this loss has been attributed to an asset reassessment implemented by the company in Q2 of last year.
Revenues worth $174.25m (AED640m) were recorded by Union Properties last year, which is a 33% reduction compared to corresponding 2016 values, worth $261.4m (AED960m).
Total assets stood at $1.5bn (AED5.6bn) as of 31 December, 2017, lower than 2016 assets, worth $2.2bn (AED7.9bn).
The firm's $626.2m net loss is a significant drop compared to 2016's net profit, worth $57.5m (AED211m).
In a statement, Union Properties said that "most of the losses" were linked to provisions worth $ (AED2.8bn) booked in Q2 2017.
These provisions were made for the reassessment of select Union Properties assets in a bid to reflect the new management team's "prudent approach to risk".
Union Properties' chairman expressed confidence in the firm's prospects for 2018.
Nasser Buttin Omair bin Yousef, chairman of Union Properties, added: "2017 marked a major turning point for Union Properties, where we successfully mapped out a comprehensive growth strategy spanning across our operations.
"We have worked internally to ensure they reflect the new growth directions we are heading towards. This enables us to enhance the efficiency of our operations, diversify our investment portfolio, and expand our business by entering new markets to achieve long-term, sustainable growth."
Yourself listed the launch of Motor City's (pictured) new master plan, as well as projects and subsidiaries, among Union Properties' key milestones from 2017.
"Our recent decisions, such as selling our stake in Emicool and buying shares in Palm Hills, will contribute towards strengthening our portfolio and expanding our operations and development projects, as well as supporting our growth strategy."
Union Properties established two subsidiaries in Q3 2017, Union Malls and Al Etihad Hotel Management.
In October, the company formed an investment arm, named UPP Capital Investment, as part of its real estate diversification strategy.