First Dubai posts losses of Dhs118m for end of Q3 2009

Al Baker said that development work on the company's projects in Dubai and Abu Dhabi is progressing, and that profits are flowing in from the firm's operations.

However, First Dubai included unrealized losses of Dhs208.5m in Q3 2009, although shareholders' rights were not affected, as these losses were recorded in the cumulative change in fair value of investments available for sale within equity. Now after booking the losses in income statement, they were transferred to accumulated losses within equity as well.

Al Baker went on to say that the company's five-year plan commenced earlier this year, with the delivery of its mega projects in Dubai, including 'The Villa' residential project in Dubailand, which is 50% complete, the 'Queue Point' project at Al Liwan in Dubailand, which includes five residential buildings that have been completely sold, and which is 20% complete, and the Sky Gardens project, 60% of which has been sold, with the remaining plots, including residential and office units to be offered for lease as part of a large marketing campaign to be launched in December. First Dubai has a particular interest in Sky Gardens, as the project is a landmark project within the Dubai International Financial Centre (DIFC), an important destination for investors and residents alike.

Al Baker added that First Dubai's plan for the next five years includes development of the 'Morina Residence' in Sorouh Real Estate's 'Shams Abu Dhabi' development, for which foundation and support operations were recently completed. Concrete structure works will soon be handed to a UAE-based company.

"Recent research and studies show that the real estate market in Abu Dhabi is stable and investments are quite successful, and this motivates us to continue with the development of the Morina Residence project, which comprises a residential tower with 29 floors and four basement levels, in addition to gardens, lakes and swimming pools,"

he explained.

Said Al Baker: "First Dubai's total assets amounted to Dhs1,806m at end of Q3 2009, compared to Dhs1,793m in December 2008, while total debts to banks amounted to Dhs192m, compared with Dhs192m in December 2008. These results reflect First Dubai's strong financial position and the quality of the assets held by the company. Total shareholders' rights for the first nine months of 2009 amounted to Dhs1,230m, compared to Dhs1,198m in December 2008," added Al Baker.

Al Baker concluded by saying that the coming period will be one of relative stability for First Dubai due to company's plans to deliver the above mentioned projects. He also noted that the current share market value does not reflect book value or fair value per share.