Dubai real estate developer Union Properties provided that it has recorded accumulated misfortunes of AED1.96 billion ($533.4 million) in 2020, showing about 45.7 percent of the capital.
The loss was mainly due to a fair costing loss of AED2.07 billion in relation to investment properties registered in the fiscal year 2017 (correction of gross floor area and decline in the fair cost of real estate portfolio) and the general reduction of the real estate sector in the UAE, provided by the Union Properties in its recording to Dubai Financial Market.
A host of other factors also contributed to the loss like impairment of AED503 million registered on the fiscal year 2017 and material adverse impact of the Covid-19 pandemic on the whole UAE economy and consequently on the activities of the group.
Union Properties provided that to solve the accumulated losses, it will soon rebuild its debt, regain the outstanding receivables, cut the operating prices adding on to developing an extensive land bank, and improving benefits with recurring cash flow.
The misfortune was prevalent because of varieties in the valuations of its real estate portfolio. These collected misfortunes might actually be recovered in case of an increment in the costs of lands in Dubai, expressed the Emirati designer in its bourse documenting.
Meanwhile, the organization will keep focusing in on its working auxiliaries through a possible posting of specific auxiliaries and other cash-generating activities.