Union Properties, a developer in Dubai, revealed a net profit of Dh18.3 million for the first quarter of 2024, showcasing the efficiency of its strong operational plans and cost control. This impressive result highlights the business’s successful recovery following several setbacks in the previous years.
The encouraging results have been fueled by high property sales and Dubai’s upward trend in the real estate market, said Amer Khansaheb, CEO and Board Member at Union Properties PJSC. “We aim to solidify our position in the UAE’s real estate sector and launch projects worth Dh5 billion in the short to medium term,” he added.
The DFM-listed business reported that it had “a successful Q2 2024,” with revenue from contractual engagements rising from Dh 119 million in Q2 2023 to Dh 128 million, a 7.6% increase.
Significant contributions were made by the Group’s subsidiaries, which resulted in an accumulated gross profit of Dh 52.6 million in H1 2024—a 15% increase over H1 2023’s Dh 45.6 million.
“As a direct result of restructuring the long-term debt with the banks, during H1 2024, the company was able to reduce its financial costs from Dh 56 million in 2023 to Dh 15 million in 2024,” it said in a statement. During H1 2024, the company reached an accumulated profit of Dh 34.8 million, doubling its earnings compared to Dh 17.7 million during the same period in 2023.
Acquisition plans
Additionally, one of Union Properties’ subsidiaries is investigating the possibility of purchasing an outsourcing business, which might raise the asset value and profitability of the latter.
Khansaheb said, “The remarkable second quarter financial results, fuelled by high property sales and Dubai’s real estate market uptrend, reflect our dedication to excellence and strategic growth. These achievements underscore our ability to navigate complex business dynamics.”
He added, “Union Properties is focused on driving sustainable growth and enhancing shareholder value through strategic investments and innovative projects.”
