Al Etihad Real Estate Company, one of the largest real estate development companies in the Emirate of Dubai, recorded losses of 2.3 billion dirhams at the end of the first half of 2017, (the dollar equals 3.67 dirhams) compared to profits of 113.8 million dirhams were achieved during the same period in 2016.

The company attributed in a statement the cause of the losses during the current period to recording losses from the valuation of investment properties exceeding two billion dirhams, compared to achieving profits of 165.7 million dirhams during the first half of 2016, The direct costs increased by 23%, in addition to the increase in the financing costs by 43%.

Reevaluate

For his part, Nasser Butti bin Youssef, Chairman of the Board of Directors of the Union Real Estate (DU: UPRO ) listed on the Dubai Stock Exchange, the allocations resulted from a revaluation of the company's assets, in addition to a provision of 502 million dirhams to two million square feet that was calculated in error in 2015 and 2016 and had to be changed when discovered During the second quarter of 2017.

He pointed out that the losses accordingly are non-bookable as a result of the real estate revaluation, and the wrong account is added with a value of 503 million dirhams.

He said that the new administration found accounting errors and had to be addressed and terminated in the second quarter, noting that there are no provisions in the coming periods, where this treatment was completed. < / p>

He added that the company is now developing its strategic plan, which will be announced in the upcoming Cityscape Dubai.

New projects

He revealed that the company intends to launch new projects in Motor City in Dubai, which include 25 thousand housing units in total.

He pointed out that associate and affiliate companies are working well, and that the exit from Emicol will be close, which will bring them profits, stressing that there are data that the company will issue in the future in this regard.

He added that the company is studying a restructuring plan, and will develop a strategic plan to remedy its financial and administrative matters.

The company said in a statement that after conducting an in-depth accounting review, and pursuant to the long-term higher interest of the company, the board of directors decided to set aside provisions of 2.8 billion dirhams, This decision has been communicated to both the regulatory authorities and the company's shareholders.

She added that those allocations reflect the rational approach to risks adopted by the new board of directors and the way it deals with the accounting standards for the total unstructured floor area, and these allocations have resulted in net losses AED 2.3 billion for the three months ended June 30, 2017.