Union Properties, the developer primarily known for its projects in Dubai’s Motor City, posted a Dh45 million loss for the third quarter, as construction revenues dropped by more than a half.
The loss, reported on the Dubai stock exchange, was an improvement on the Dh2.3 billion loss posted in the previous quarter, but down from a Dh32m profit for the third quarter of 2016.
Revenues from contracting and other operating activities - the company’s largest revenue generator - fell 56 per cent year-on-year to Dh82m. Property management and sales revenue declined 15 per cent year-on-year to Dh18m.
Union Properties announced in August a Dh2.8bn write-down of the value of its assets by a new management team in its second-quarter results, leading to its worst ever quarterly loss for the three months to the end of June.
A new chairman and vice-chairman were appointed in May after an impromptu board reshuffle saw the resignation of three directors, including the chairman Khalid bin Kalban. A new chief executive, Ahmed Khouri, was appointed in July.
The Union Properties chairman Nasser bin Yousef described the actions taken in the second quarter as "a one-time charge for the accounting irregularity by the previous management.”
The company’s shares opened 1 per cent lower in early Tuesday trading.