Dubai-based engineer Union Properties swung to an entire year benefit in 2020, driven by its turnaround system and a fall in working expenses.
The organization’s total profit for the period ending 31 December reached Dh201 million, raised from a loss of Dh224.3m registered at the end of 2019, the organization provided in a statement to the Dubai Financial Market, where its shares trade.
However, the profit for the year decreased 11 percent to Dh375.86m. Profits at the end of the previous year raised to Dh5.99 billion from Dh5.86bn registered in 2019. Shareholder equity raised 6.6 percent year-on-year to Dh2.89bn.
“Despite extremely challenging market conditions, this impressive turnaround has been achieved thanks to the group’s asset quality … [and a] massive reduction in operating costs compared to previous years,” the company said.
The turnaround system being executed by the organization’s board has permitted it to lessen collected misfortunes and increment investor value, Union Properties said, without giving subtleties of the decrease in gathered misfortunes or working expenses.
Association Properties, similar to its peers in Dubai, has confronted headwinds in the midst of a stoppage in the emirate’s housing market in the wake of a drop in oil costs that started in 2014. Progressing worries about an oversupply of properties and the Covid-19 pandemic presented further difficulties in 2020, influencing land deals. Property costs in Dubai slipped 8 percent year-on-year Dubai during the final quarter, as per a new report from JLL.
Union Properties, whose projects contain Motor City and Uptown Mirdif, agreed on an agreement with Emirates NBD in August to rebuild a unique debt of Dh946m. The organization has also reached on to sell a 40 percent stake in its Dubai Autodrome subsidiary for Dh400m, this is provided in a statement in September.
Union Properties, whose overall income plans also contain branching out operations and developing recurring revenue lines, is strategizing to list three of its subsidiary companies.