Union Properties PJSC — Interim / Quarterly Report 2021

Nov 22, 2021

Union Properties P.J.S.C and its Subsidiaries

Unaudited interim condensed consolidated financial statements 30 September 2021

Union Properties Public Joint Stock Company and its subsidiaries Unaudited interim condensed consolidated financial statements

30 September 2021
Contents Page(s)
Interim condensed consolidated statement of profit or loss and other comprehensive income ....... 1-2
Interim condensed consolidated statement of financial position ............................................................ 3
Interim condensed consolidated statement of cash flows ....................................................................... 4
Interim condensed consolidated statement of changes in equity ............................................................ 5
Notes to the interim condensed consolidated financial statements ................................................ 6 – 16

Union Properties Public Joint Stock Company and its subsidiaries

Interim condensed consolidated statement of profit or loss and other comprehensive income (unaudited)

For the nine-month period ended 30 September 2021

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Nine-month period ended
30 September
2021 2020
Notes AED’000 AED’000
Revenue from contracts with customers 17 296,018 286,315
Net gain/(loss) on financial instruments at FVTPL 10 5,338 (54,959)
-
Share of profits from associates, net 7,818
Loss on disposal of an associate 5 - (234,524)
Gain on fair valuation of investment properties 7 78,854 821,990
Loss on sale of investment properties 7 (17,860) (20,000)
Finance income 1,519 1,984
Other income 6 35,778 11,760
Direct costs 17 (244,362) (291,093)
Administrative and general expenses 17 (89,195) (84,170)
Finance cost 17 (64,721) (96,342)
Profit/(loss) for the period 1,369 348,779
Other comprehensive income for the period - (15,508)
Total comprehensive income for the period 1,369 333,271
Basic and diluted earnings per share (AED) 12 0.0003 0.0813
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The notes from 1 to 18 form an integral part of these interim condensed consolidated financial statements

1

Union Properties Public Joint Stock Company and its subsidiaries

Interim condensed consolidated statement of profit or loss and other comprehensive income (unaudited)

For the three-month period ended 30 September 2021

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Three month period ended 30
September
2021 2020
Notes AED’000 AED’000
Revenue from contracts with customers 17 98,570 90,521
Net (loss)/gain on financial instruments at FVTPL 10 (3,066) 19,317
-
Share of profit from associates, net 5,480
Loss on disposal of an associate 5 - (234,524)
Gain on fair valuation of investment properties 7 - 821,990
Gain/(loss) on sale of investment properties 7 5,425 (164)
Finance income 497 1,243
Other income 6 2,810 2,603
Direct costs 17 (81,001) (140,084)
Administrative and general expenses 17 (34,047) (26,207)
Finance cost 17 (20,203) (30,969)
(Loss)/profit for the period (31,015) 509,206
- -
Other comprehensive income for the period
Total comprehensive (loss)/income for the period (31,015) 509,206
Basic and diluted earnings per share (AED) 12 (0.007) 0.119
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The notes from 1 to 18 form an integral part of these interim condensed consolidated financial statements.

2

Union Properties Public Joint Stock Company and its subsidiaries Interim condensed consolidated statement of financial position

As at 30 September 2021

Notes ASSETS Non-current assets Property, plant and equipment Right-of-use assets Investment properties 7 Development properties Investments in an associate Investments at fair value through profit or loss 10 Non-current receivables 8 Total non-current assets Current assets Investments at fair value through profit or loss 10 Inventories Contract assets Trade and other receivables 8 Due from related parties 9 Cash and cash equivalents 11 Total current assets Total assets EQUITY AND LIABILITIES Equity Share capital Statutory reserve Asset revaluation surplus Accumulated losses Total equity attributable to the shareholders of the Company Non-current liabilities Non-current portion of bank loans 13 Contract liabilities Lease liabilities Provision for staff terminal benefits Total non-current liabilities Current liabilities Trade and other payables 14 Contract liabilities Lease liabilities Bank overdrafts 15 Current portion of bank loans 13 Total current liabilities Total liabilities Total equity and liabilities	Unaudited 30 September 2021 AED’000 345,433 24,032 4,447,220 7,504 87,368 - 5,417 4,916,974 155,376 14,343 226,695 583,142 - 49,937 1,029,493 5,946,467 4,289,540 352,978 212,689 (1,959,704) 2,895,503 321,060 8,118 18,572 36,576 384,326 1,286,690 128,157 4,643 203,965 1,043,183 2,666,638 3,050,964 5,946,467	Audited 31 December 2020 AED’000 348,076 26,371 4,612,744 7,504 87,368 114,608 33,194
		5,229,865
		37,276 7,913 218,864 394,888 7,648 45,400
		711,989
		5,941,854
		4,289,540 352,978 212,689 (1,961,073)
		2,894,134
		463,056 8,118 20,333 32,935
		524,442
		1,237,010 88,692 5,084 192,235 1,000,257
		2,523,278
		3,047,720
		5,941,854

.

The notes from 1 to 18 form an integral part of these interim condensed consolidated financial statements.

3

Union Properties Public Joint Stock Company and its subsidiaries Interim condensed consolidated statement of cash flows (unaudited)

For the nine-month period ended 30 September 2021

Note Operating activities Profit/(loss) for the period Adjustments for: Depreciation of property, plant and equipment Depreciation of right of use assets Loss on sale of investment properties Gain on fair valuation of investment properties Share of results of associates, net (Gain)/loss on financial instruments at FVTPL, net Loss on disposal of an associate Gain on disposal of property, plant and equipment Finance income Finance cost Operating profit before working capital changes Change in non-current receivables Change in inventories Change in contract assets Change in trade and other receivables Change in due from related parties Change in non-current payables Change in trade and other payables and contract liabilities Change in staff terminal benefits (net) Net cash (used in)/from operating activities Investing activities Additions to property, plant and equipment Proceeds from/investments in financial instruments at FVTPL, net Proceeds from disposal of property, plant and equipment Proceeds from sale of investment properties Proceeds from disposal of investment in an associate Interest income received Changes in deposits with banks Net cash from investing activities Financing activities Proceed from long-term bank loans Repayment of long-term bank loans Advances to banks against loan principal and interest Interest paid Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 11	Nine-month period ended 30 September	Nine-month period ended 30 September
	2021 AED’000 1,369 7,660 3,508 17,860 (78,854) - (5,338) - 7,095 (1,519) 64,721 16,502 (6,430) 8,952 (146,452) 7,648 (920) 56,193 3,641 (60,866) (7,886) 1,846 351 216,722 - 39 (5,467) 205,605 47,092 (146,162) (42,000) (19,631) (160,701) (15,962) (172,765) (188,727)	2020 AED’000 348,779 7,823 3,516 20,000 (821,990) (7,818) 54,959 234,524 - (1,984) 96,342
		(65,849) (1,024) 14,514 21,509 8,925 16,430 105,054 2,017
		101,576
		(5,123) 2,302 97 35,357 125,518 89 (2,414)
		155,826
		36,107 (77,461) (30,000) (28,661)
		(100,015)
		157,387 (247,895)
		(90,508)

The notes from 1 to 18 form an integral part of these interim condensed consolidated financial statements.

4

Union Properties Public Joint Stock Company and its subsidiaries Interim condensed consolidated statement of changes in equity (unaudited)

For the nine-month period ended 30 September 2021

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Currency Asset
Share Statutory translation revaluation Accumlated
capital reserve reserve surplus losses Total
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
At 1 January 2020 (audited) 4,289,540 332,880 15,508 212,689 (2,141,959) 2,708,658
Total comprehensive loss for the period - - (15,508) - 348,779 333,271
-
At 30 September 2020 (unaudited) 4,289,540 332,880 212,689 (1,793,180) 3,041,929
-
At 1 January 2021 (audited) 4,289,540 352,978 212,689 (1,961,073) 2,894,134
Total comprehensive income for the period - - - - 1,369 1,369
-
At 30 September 2021 (unaudited) 4,289,540 352,978 212,689 (1,959,704) 2,895,503
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The notes from 1 to 16 form an integral part of these interim condensed consolidated financial statements.

5

Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements

1 LEGAL STATUS AND PRINCIPAL ACTIVITIES

Union Properties Public Joint Stock Company (“the Company”) was incorporated on 28 October 1993 as a public joint stock company by a United Arab Emirates Ministerial decree. The Company’s registered office address is P.O. Box 24649, Dubai, United Arab Emirates (“UAE”).

The principal activities of the Company are investment in and development of properties, the management and maintenance of owned properties including the operation of cold stores, the undertaking of property related services on behalf of other parties (including related parties) and acting as the holding company of its subsidiaries and investing in other entities.

The Company and its subsidiaries are collectively referred to as “the Group”.

2 NEW STANDARDS, AMENDMENT TO STANDARDS AND INTERPRETATIONS

There are no new standards issued, however, there are number of amendments to standards which are effective from January 1, 2021 and has been explained in Group annual consolidated financial statements as at year ended December 31, 2020 but they do not have a material impact on the Group’s interim condensed consolidated financial statements.

3 BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The interim condensed consolidated financial statements of the Group are prepared in accordance with International Accounting Standard 34: Interim Financial Reporting and applicable requirements of the United Arab Emirates laws.

The interim condensed consolidated financial statements do not contain all information and disclosures required for full financial statements prepared in accordance with International Financial Reporting Standards (IFRS), and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2020. The same accounting policies, methods of computation, significant accounting judgments and estimates and assumptions are followed in these interim condensed consolidated financial statements as compared with the most recent annual consolidated financial statements.

The interim condensed consolidated financial statements have been prepared in United Arab Emirates Dirhams (AED), which is the Company’s functional and presentation currency, and all values are rounded to the nearest thousand except where otherwise indicated.

The interim condensed consolidated financial statements have been prepared on a historical cost basis except for financial assets at fair value through profit and loss and investment properties that have been measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

The results for the nine-month period ended 30 September 2021 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2021.

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Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

4 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of interim condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these interim condensed consolidated financial statements, the significant judgements made by the management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2020.

5 INVESTMENTS IN ASSOCIATES

The disposal of the share in the associate resulted a loss on disposal amounting to AED 234.5 million recognized in profit or loss (note 15).

6 OTHER INCOME

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Unaudited Unaudited
30 September 2021 30 September 2020
-
Reversals of liabilities (refer note below) 20,298
-
Gain on disposal of property, plant and equipment 7,095
Miscellaneous income 8,385 11,760
35,778 11,760
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The reversals of liabilities are mainly related to payables and accruals in relation to completed projects and cancelation of contracts for which management assessed that no settlement will be required against.

7 INVESTMENT PROPERTIES

7 INVESTMENT PROPERTIES
At 1 January Transfer from property, plant and equipment Gain on fair valuation Sale of investment properties Closing balance	Unaudited 30 September 2021 AED’000 4,612,744 - 78,854 (244,378) 4,447,220	Audited 31 December 2020 AED’000 4,111,636 8,570 743,549 (251,011)
		4,612,744

The Group follows the fair value model under IAS 40 (Revised 2003) where investment property defined as land and buildings owned for the purpose of generating rental income or capital appreciation, or both, are fair valued based on an open market valuation. The most recent valuation was carried out on 30 June 2021 by an independent registered valuer, ValuStrat Consulting FZCO, who carried out the valuation in accordance with RICS Appraisal and the Valuation Manual issued by the Royal Institute of Chartered Surveyors. The independent valuers have been appointed to provide the fair value of the Group’s investment property portfolio on a semi annual basis.

Based on the above, fair value gain of AED 78.9 million has been recognised in the consolidated statement of profit or loss for the nine months period ended 30 September 2021 (31 December 2020: AED 743.6 million).

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Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

7 INVESTMENT PROPERTIES (CONTINUED)

Sale of investment properties

During the nine-month period ended 30 September 2021, investment properties with a carrying value of AED 244.4 million were sold for a consideration of AED 226.5 million resulting in a loss of AED 17.9 million.

Valuation gain on gross floor area

During the previous years, the Group had undertaken a full review of the Masterplan for Dubai Motorcity and had submitted a formal request to the concerned regulatory authorities for the issuance of revised affection plans with amended Gross Floor Areas (the “GFA’s”). Furthermore, in accordance with the directions of Dubai Development Authority, the Group had appointed approved independent third party surveyors to perform a detailed survey of the entire land bank at Dubai Motorcity. Based on the official third party surveyor reports, the Group got an attestation from Dubai Land for an additional GFA and thereafter also got an approval of the Traffic Impact Study from Road and Transport Authority during the period ended 30 September 2021. Based on surveyor reports, valuation and approvals received from the experts and authorities, the management continued with inclusion of the additional GFA to the value of AED 1,312 Million in the valuation of the Motorcity land bank in the Group financial statements as at 30 September 2021 (31 December 2020: AED 1,249 million), on the understanding that the approvals expected to be updated on the Dubai Development Authority system at the earliest.

8 TRADE AND OTHER RECEIVABLES

8 TRADE AND OTHER RECEIVABLES
Financial instruments Trade receivables Retention receivables Property sales receivables Less: allowance for expected credit losses Other receivables Total (A) Non-financial instruments Advances to contractors Advances to banks against loan principal and interest Prepayments and advances Total (B) Total (A+B)	Unaudited 30 September 2021 AED’000 2,000,195 52,569 69,622 2,122,386 (1,838,882) 283,504 54,237 337,741 111,176 112,000 22,225 245,401 583,142	Audited 31 December 2020 AED’000 1,955,931 52,059 46,104
		2,054,094 (1,837,352)
		216,742 64,441
		281,183
		26,241 70,000 17,464
		113,705
		394,888

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Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

8 TRADE AND OTHER RECEIVABLES (CONTINUED)

Non-current receivables

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Unaudited Audited
30 September 2021 31 December 2020
AED’000 AED’000
Retention receivables 5,417 5,167
Property sales receivables - 28,027
5,417 33,194
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Impairment losses

Set out below is the information about the credit risk exposure on the Group’s trade and retention receivables using a provision matrix:

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Trade receivables
Past due
Retentions 1-90 91-365 >365
receivable Current days days days Total
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
30 September 2021
Expected credit loss rate 69.77% 0.00% 0.00% 0.00% 99.25%
Gross amount 57,986 118,321 41,118 98,376 1,812,002 2,127,803
Expected credit loss 40,456 - - - 1,798,426 1,838,882
31 December 2020
Expected credit loss rate 81.76% 3.59% 14.79% 7.75% 98.51%
Gross amount 57,226 74,515 58,632 100,900 1,787,549 2,078,822
Expected credit loss 40,456 - 11,094 11,095 1,774,707 1,837,352
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The movement in the allowance for expected credit losses in respect of trade and retention receivables during the period/year is as follows:

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Unaudited Audited
30 September 2021 31 December 2020
AED’000 AED’000
At 1 January 1,837,352 1,831,650
Addition for the period/year 1,588 7,991
Amounts written off (58) (2,289)
Closing balance 1,838,882 1,837,352
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9

Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

9 TRANSACTIONS WITH RELATED PARTIES

The Group, in the normal course of business, enters into transactions with other enterprises, which fall within the definition of a related party contained in IAS 24. Such transactions are carried out at agreed rates. The significant transactions with related parties, other than those already disclosed separately elsewhere in the interim condensed consolidated financial statements are as follows:

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Unaudited Unaudited
30 September 2021 30 September 2020
AED’000 AED’000
Compensation to key management personnel are as follows :
- Salaries and other short-term employee benefits 8,849 6,735
- Provision towards staff terminal benefits 585 371
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Balances with related parties in the consolidated statement of financial position represent balances due from an equity accounted investee is nil (31 December 2020: AED 7.6 million) .

10 INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

The Group holds investment securities which are classified as investments at fair value through profit or loss in accordance with IFRS 9.

During the nine-month period ended 30 September 2021, the Group sold investments in funds and invested in various listed equity investments, having a fair value of AED 151.1 million at the reporting date (31 December 2020: AED 151.9 million), which resulted in a net profit on change in fair value of AED 5.3 million during the nine month period ended 30 September 2021 (2020: net loss of AED 74.3 million) .

An amount of AED 121 million which is a part of the AED 151.1 million of investments is currently valued as of 30 June 2021.

The Group also has an investment in a real estate fund valued at AED 0.8 million at end of the period (2020: AED 0.8 million) .

11 CASH AND CASH EQUIVALENTS

Cash in hand Cash at bank –in deposit accounts held under lien –in current accounts – in other deposit accounts	Unaudited 30 September 2021 AED’000 1,185 27,912 14,053 6,787 49,937	Audited 31 December 2020 AED’000 889 14,781 18,581 11,149
		45,400

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Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

11 CASH AND CASH EQUIVALENTS (CONTINUED)

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Unaudited Audited
30 September 2021 31 December 2020
AED’000 AED’000
Cash and cash equivalents comprise:
Cash in hand and at banks (excluding deposits under lien) 15,238 19,470
Bank overdrafts (203,965) (192,235)
(188,727) (172,765)
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12 BASIC AND DILUTED EARNINGS PER SHARE

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Unaudited Unaudited
Nine month period ended 30 September Three month period ended 30 June
2021 2020 2021 2020
Profit/(loss) attributable to shareholders (AED’000) 1,369 348,779 (31,015) 509,206
Weighted average number of shares 4,289,540,134 4,289,540,134 4,289,540,134 4,289,540,134
Basic and diluted earnings per share (AED) 0.0003 0.0813 (0.0072) 0.1187
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13 BANK LOANS

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Unaudited Audited
30 September 2021 31 December 2020
AED’000 AED’000
Balance 1,364,243 1,463,313
Less: Current portion (1,043,183) (1,000,257)
Non-current portion 321,060 463,056
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The bank loans carry interest at commercial rates.

The movement in bank loans during the period/year was as follows:

At 1 January Availed during the period/year	Unaudited 30 September 2021 AED’000 1,463,313 47,092	Audited 31 December 2020 AED’000 1,518,304 47,697 (102,688) 1,463,313
Repayments during the period/year	(146,162)
At the end of the period/year	1,364,243

At 30 September 2021, the two loans that have been classified as current liabilities at year-ended 2020 due to breach in contractual payments continue to be classified as current liabilities.

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Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

14 TRADE AND OTHER PAYABLES

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Unaudited Audited
30 September 2021 31 December 2020
AED’000 AED’000
Financial instruments
Trade payables 328,670 323,471
Retention payables 39,653 39,355
Other payables and accruals 918,367 874,184
Total 1,286,690 1,237,010
Unaudited Audited
30 September 2021 31 December 2020
AED’000 AED’000
Provisions and accruals against contracting business 581,266 518,716
Provision for staff related payables 34,612 42,415
Provisions and accruals for payment to contractors cost 36,763 36,504
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15 BANK OVERDRAFTS

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Unaudited Audited
30 September 2021 31 December 2020
AED’000 AED’000
Bank overdrafts 203,965 192,235
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Significant terms and conditions

Bank overdrafts have been obtained from local and foreign banks to finance the working capital requirements of the Group, which carry interest at commercial rates.

Securities

Bank overdrafts are secured by:

• Promissory notes;

• Joint and several guarantees of the Company;

• A letter of undertaking by the Company not to reduce its shareholding in Thermo LLC (“a subsidiary”) as long as the banking facilities are outstanding; and

• Assignment of certain contract and retention receivables.

In July 2020, the Group’s entire investment in the foreign associate was sold by the counterparty at its own discretion and the resulting net sale proceeds amounting to AED 125.5 million were utilized by the counterparty against the outstanding balance under the overdraft facility (note 5).

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Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

16 FINANCIAL INSTRUMENTS

Financial assets of the Group include non-current receivables, investments at FVTPL, trade and other receivables, amounts due from related parties and cash in hand and at banks. Financial liabilities of the Group include trade and other payables, lease liabilities, short-term bank borrowings, long-term bank loans and non-current payables. The table below sets out the Group’s classification of each class of financial assets and financial liabilities and their fair values for the current and the comparative periods:

30 September 2021 (unaudited) Financial assets Non-current receivables Investments at FVTPL Trade and other receivables Due from related parties Cash in hand and at banks Total Financial liabilities Trade and other payables Lease liabilities Bank overdrafts Bank loans Total	At fair value through profit or loss AED’000 - 155,376 - - - 155,376 - - - - -	At amorized cost AED’000 5,417 - 337,741 - 49,937 393,095 1,286,690 23,215 203,965 1,364,243 2,878,113	Carrying amount AED’000 5,417 155,376 337,741 - 49,937 548,471 1,286,690 23,215 203,965 1,364,243 2,878,113		Fair value AED’000 5,417 155,376 337,741 - 49,937 548,471 1,286,690 23,215 203,965 1,364,243 2,878,113
31 December 2020 (audited) Financial assets Non-current receivables Investments at FVTPL Trade and other receivables Due from related parties Cash in hand and at banks Total Financial liabilities Trade and other payables Bank overdrafts Bank loans Lease liabilities Total	At fair value through profit or loss AED’000 - 151,884 - - - 151,884 - - - - -	At amorized cost AED’000 33,194 - 281,183 7,648 45,400 367,425 1,237,010 192,235 1,463,313 25,417 2,917,975	Carrying amount AED’000 33,194 151,884 281,183 7,648 45,400 519,309 1,237,010 192,235 1,463,313 25,417 2,917,975		Fair value AED’000 33,194 151,884 281,183 7,648 45,400
					519,309
					1,237,010 192,235 1,463,313 25,417
					2,917,975

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Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

16 FINANCIAL INSTRUMENTS (CONTINUED)

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

• Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Group holds investments at fair value through profit or loss. The fair value of quoted securities is determined by reference to their quoted bid prices as at the reporting date. Investments in marketable securities are stated at cost where no observable market data is available. Accordingly, the fair value hierarchy is set out as below:

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Level 1 Level 3 Total
AED'000 AED'000 AED'000
30 September 2021 (unaudited)
Investments at fair value through profit or loss 154,620 756 155,376
31 December 2020 (audited)
Investments at fair value through profit or loss 151,128 756 151,884
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There have been no reclassifications made during the current period or in the previous year/period.

Level 1:

Opening balance Additions Sales Transfer from investment in associate Total gains or losses – net: Closing balance	Unaudited 30 September 2021 AED’000 151,128 111,941 (113,787) - 5,338 154,620	Audited 31 December 2020 AED’000 196,164 830,395 (833,313) 1,213 (43,331) 151,128	Unaudited 30 September 2020 AED’000 196,756 731,704 (734,006) - (54,959)
			139,495

17 SEGMENT REPORTING

Business segments

The Group’s activities include four main business segments, namely, real estate property management, contracting activities, investing activities, and sales of goods and services. The details of segment revenue, segment result, segment assets and segment liabilities are as follows:

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Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

17 SEGMENT REPORTING (CONTINUED)

Nine-month period ended 30 September 2021 (unaudited) Segment revenue Gain on financial instruments at FVTPL Gain on valuation of properties Loss on sale of investment properties Finance income Other income Direct cost Administrative and general expenses Finance cost Profit/(loss) for the period Capital expenditure Depreciation of property, plant and equipment Depreciation of right of use assets As at 30 September (unaudited) Segment assets Investments in associates Total assets Segment liabilities Nine-month period ended 30 September 2020 (unaudited) Segment revenue Loss on financial instruments at FVTPL Share of profit from associates Loss on disposal of an associate Gain on valuation of properties Loss on sale of investment properties Finance income Other income Direct cost Administrative and general expenses Finance cost Profit/(loss) for the period Capital expenditure Depreciation of property, plant and equipment Depreciation of right of use assets As at 31 December 2020 (audited) Segment assets Investment in associates Total assets Segment liabilities	Real estate AED’000 32,919 - 78,854 (17,860) 1,480 30,427 (28,559) (51,187) (29,854) 16,220 1,224 3,275 2,822 4,838,149 - 4,838,149 1,118,533 45,052 - - - 821,990 (20,000) 1,895 8,413 (95,806) (49,665) (41,729) 670,150 2,123 4,035 3,020 4,865,732 - 4,865,732 1,212,680 ~~,~~ ~~,~~	Contracting AED’000 41,593 - - - 39 218 (35,217) (6,138) (27,685) (27,190) 1,218 1,493 - 306,949 - 306,949 1,633,043 53,148 - - - - - 89 137 (43,639) (6,111) (31,961) (28,337) 747 2,153 - 285,016 - 285,016 1,536,599 ~~,~~ ~~,~~	Goods and services AED’000 221,506 - - - - 5,127 (180,586) (28,254) (3,220) 14,573 5,444 2,856 686 559,041 - 559,041 187,214 188,115 - - - - - - 3,176 (151,648) (23,739) (4,404) 11,500 2,253 1,576 496 552,222 - 552,222 191,024 ~~,~~	Investments AED’000 - 5,338 - - - 6 - (3,616) (3,962) (2,234) - 36 - 154,960 87,368 242,328 112,409 - (54,959) 7,818 (234,524) - - - 34 - (4,655) (18,248) (304,534) - 59 - 151,516 87,368 238,884 107,417 ~~,~~	Total
					AED’000 296,018 5,338 78,854 (17,860) 1,519 35,778 (244,362) (89,195) (64,721)
					1,369
					7,886 7,660 3,508
					5,859,099 87,368
					5,946,467
					3,051,199
					286,315 (54,959) 7,818 (234,524) 821,990 (20,000) 1,984 11,760 (291,093) (84,170) (96,342)
					348,779
					5,123 7,823 3,516
					5,854,486 87,368
					5,941,854
					3,047,720

15

Union Properties Public Joint Stock Company and its subsidiaries Notes to the interim condensed consolidated financial statements (continued)

17 SEGMENT REPORTING (CONTINUED)

Three month period ended 30 September 2021 (unaudited) Segment revenue Loss on financial instruments at FVTPL Loss on sale of investment properties Finance income Other income Direct cost Administrative and general expenses Finance cost Profit/(loss) for the period Depreciation of property, plant and equipment Depreciation of right of use assets Three month period ended 30 September 2020 (unaudited) Segment revenue Loss on financial instruments at FVTPL Share of profit from associates Loss on disposal of an associate Gain on valuation of properties Loss on sale of investment properties Finance income Other income Direct cost Administrative and general expenses Finance cost Profit/(loss) for the period Depreciation of property, plant and equipment Depreciation of right of use assets	Real estate AED’000 10,944 - 5,425 493 830 (6,865) (21,368) (8,687) (19,228) 500 940 12,098 - - - 821,990 (164) 1,224 1,437 (76,072) (15,826) (12,742) 731,945 101 1,006	Contracting AED’000 13,367 - - 4 10 (11,362) (2,026) (9,350) (9,357) 495 - 16,858 - - - - - 19 134 (13,559) (2,148) (10,419) (9,115) 589 -	Goods and services AED’000 74,259 - - - 1,970 (62,774) (9,453) (945) 3,057 944 229 61,565 - - - - - - 1,010 (50,453) (7,415) (1,116) 3,591 437 44	Investments AED’000 - (3,066) - - - - (1,200) (1,221) (5,487) - - - 19,317 5,480 (234,524) - - - 22 - (818) (6,692) (217,215) 20 -	Total
					AED’000 98,570 (3,066) 5,425 497 2,810 (81,001) (34,047) (20,203)
					(31,015)
					1,939 1,169
					90,521 19,317 5,480 (234,524) 821,990 (164) 1,243 2,603 (140,084) (26,207) (30,969)
					509,206
					1,147 1,050

18 CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

Company and its subsidiaries Commitments: Capital commitments Contingent liabilities: Letters of guarantee Associate Contingent liabilities: Letters of guarantee	Unaudited 30 September 2021 AED’000 9,415 289,195 252,500	Audited 31 December 2020 AED’000 34,297
		294,460
		252,500

16