UPP Surges Most Since September on Recovery Bets: Dubai MoverSarmad Khan
Union Properties PJSC jumped the most in more than four months on investor bets Dubai’s second-biggest publicly traded developer will get an earnings boost from a real-estate recovery.
Shares of the company known as UPP advanced 9.8 percent, the most since Sept. 22, to 1.79 dirhams at the close in Dubai. Volumes surged to more than four times the three-month daily average. The stock has soared 16 percent since UPP said full-year profit surged almost nine-fold. Deyaar Development PJSC rose 4.8 percent after saying yesterday earnings quadrupled.
A resurgence in Dubai’s real estate market, where prices had more than halved from their 2008 peak, has helped developers recover from the financial crisis. Construction activity has picked up as the Persian Gulf business hub prepares to host the World Expo in 2020, with about $8 billion in infrastructure spending planned.
“Fundamentally, UPP remains one of the key beneficiaries of growing investors’ interest in Dubai’s property market,” Nayal Khan, head of institutional sales and trading at Naeem Holding in Dubai, said in response to e-mailed questions. “On the earnings front, I expect 2014 to be a better year due to higher sales owing to new projects.”
UPP said Jan. 20 it will build more than 150 high-end homes and luxury villas with National Properties in Dubai. The developer reported Feb. 3 full-year profit of 1.58 billion dirhams ($430 million) compared with 175.8 million dirhams in 2012.
The shares have climbed 50 percent this year compared with a gain of 30 percent for Deyaar and 15 percent for Dubai’s benchmark index.