DHCOG Releases 2009 Financial Results

Dubai Holding Commercial Operations Group (DHCOG), which owns Dubai Properties Group, TECOM Investments and Jumeirah Group, has announced its audited financial results for the full year ended December 31, 2009. DHCOG’s total revenue reached AED 9.5 billion for the year ended 31 December 2009, a 28% decrease from AED 13.2 billion in 2008. DHCOG’s total assets contracted to AED 124.5 billion, from AED 171.4 billion in 2008. DHCOG recorded a net loss (excluding impairments) of AED 1.0 billion for the year ended 31 December 2009, compared to an AED 17.4 billion net profit in 2008. Impairment charges on the Statement of Income for the year ended 2009 stood at AED 22.5 billion as compared to AED 7.6 billion in 2008. Impairment charges recorded were, in accordance with International Financial Reporting Standards, reflecting our conservative view on the real estate market.
The decline in revenues and operating profits reflect the decrease in land sales due to the significant reduction in demand within the real estate market and the re-phased handovers of projects. Nevertheless, a number of major projects were delivered by Dubai Properties Group in 2009, including the first phase of The Villa and Shorooq. Most of the remaining projects will commence delivery during 2010 and this will reflect positively in the financials.