* Q2 loss 227.95 million dirhams vs profit of 317.7 million
* Reports loss on fair valuation of investment properties
* Earnings fall short of analyst estimate
(Adds details, background, share performance)
By Jason Benham
DUBAI, Aug 13 (Reuters) - Dubai's Union Properties said the valuation of its investment properties fell into the red, dragging the developer into a loss for the second quarter, with the sector still struggling in a global economic downturn.
The developer made a loss of 227.95 million dirhams ($62.05 million) compared with a profit of 317.7 million dirhams in the same period last year, it said in a statement on Dubai's bourse website.
The earnings fell way short of one analyst's estimate of a profit of 801 million dirhams in a Reuters survey in July.
Union Properties made a loss of 197.8 million dirhams in the first half of the year, compared with a profit of 556.1 million dirhams a year earlier, the firm said.
Executives at the company were not available for comment.
The developer made a loss on valuation of investment properties of 303.8 million dirhams in the second-quarter, compared with a profit of 231.1 million dirhams in the same period last year, it said.
Revenues for the second-quarter period rose to 1.3 billion dirhams from 919.8 million dirhams in the second-quarter last year while revenues for the six-month period ending June 30 were 1.9 billion dirhams, in line with the same period in 2008.
Revenue from contracting activities contributed 725 million dirhams to the first half of 2009 revenues, which was lower than the first half of 2008, due to the slowdown in contracting activities in general, it said.
The firm's shares closed 3.6 percent higher at 1.15 dirhams a share on Thursday. The earnings were released after trading hours. ($1=3.673 dirhams) (Editing by Inal Ersan; Editing by Jon Loades-Carter)