Union Properties fell the most in 11 months after the Dubai-based developer said its full-year loss widened as the company booked provisions.
The shares declined as much as 9.2 percent. The net loss swelled to AED1.57bn ($430m) from AED1.53bn a year earlier, the Dubai-based company said in a statement today.
Revenue climbed to AED4.92bn from AED2.87bn.
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Demand for real estate in Dubai has failed to recover from a slump that caused residential property prices to drop more than 65 percent from a mid-2008 peak as banks curtailed mortgage lending and speculative buyers fled the market. Developers cut hundreds of jobs and put projects on hold.
Union Properties secured a loan of AED400m from Emirates NBD, a bank based in the emirate, to complete two stalled hotel projects in its MotorCity development, Chairman Khalid bin Kalban said in an interview Thursday.
The developer will soon tender a contract to finish the Renaissance hotel and the Marriott Courtyard, which are about 70 percent complete, Bin Kalban said.
The company’s fourth-quarter loss narrowed to AED68.2m from AED778m a year earlier, according to Bloomberg calculations based on the full-year figures.
Union Properties rescheduled AED2.7bn of debt owed to Emirates NBD until 2017, bin Kalban said on Jan 18. It also settled AED1.1bn in debt to Emirates NBD in exchange for homes and offices in projects including Limestone and The Index towers, he said at the time.
Total assets declined to AED9.1bn at the end of last year from AED14.9bn a year earlier.
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