Al Ittihad Real Estate Company achieved quarterly profits of AED 5.6 million in the first quarter of 2021, compared with losses of AED 121.9 million in Quarter of 2020.


According to Arab Net, the company said in a statement that profits returned to several factors, focusing on major group activities and significant costs, and direct costs fell by 6.4%. Administrative costs fell 14.6% compared to the same period from 2020 and to pay Large payments from the company loans, which led to a positive decline in funding costs by 42.1% compared to the same period from 2020.


The Chairman of the Federation of Real Estate, Khalifa Hassan al-Hammadi, said the results of the first quarter of 2021, representing an encouraging start for this year. The world is still struggling to recover from the economic and health impact on the spread of the Kovid-19 virus, and the Union real estate company expanded to optimize its flock Cash through a flexible policy to adapt to the economic variables imposed by the spread of pandemic.


Al Ittihad Real Estate Company reported that its accumulated losses amounted to 1.95 billion dirhams by the end of the first quarter of 2021, 45.49% of the capital.


The accumulated losses are primarily due to the loss of AED 2.08 billion, related to real estate investments in 2017, relating to correcting the total floating area and low fair value of the real estate portfolio.


It is also due to the registration of AED 503 million in fiscal year 2017 and a year in the real estate sector in the UAE, as well as the negative material influence of the Covid -19 epidemic on the economy in general and reflected the activities of the group.


The Group said that the group is seriously dealing with accumulated losses through various measures, most notably, restructuring its debt to reduce the cost of funding, and refunds a large part of its entitlements, particularly through courts and arbitration issues, as well as the continuing reduction of operational costs and to develop Purse the Group's land, establishing assets with frequent cash flows, as well as high concentration on the group's subsidiaries.


The real estate union announced a higher losses accumulated towards about 1.96 billion dirhams by the end of the fiscal year ended 3120, accounting for 45.7% of the company's capital.


The company achieved a profit of AED 200 million in 2020, compared to losses reached AED 224 million in 2020.