Union Properties, a developer in Dubai, claims that its recovery effort is beginning to produce the outcomes that investors and the regional real estate market are hoping for.
“The present rise in net profit (for 2023) is a testament to Union Properties’ unwavering dedication to upholding transparency,” it said in a statement.
“The company continues to improve governance, reforming the corporate culture, reviewing corporate ethics, disclosing corporate information appropriately, and enhancing compliance-focused management.”
The financial statements for 2023 do paint a picture of a company that is starting to get things together. The year’s profit exceeded Dh29.9 million, coming in at Dh837 million. As opposed to Dh10 million in 2022, the operating profit was Dh101 million. (Investment properties saw a gain in valuation, rising from Dh25.9 million to Dh505 million. This and other income of Dh401 million increased the net profit for the entire year 2023.)
Contract revenue with customers increased from Dh419 million to Dh508 million. With expenses at Dh93 million as opposed to Dh347 million, costs were fairly well-managed.
How the UP stock is performing
The optimistic outlook expressed by the management and the 2023 results may have some bearing on the DFM-listed stock. In any case, the UP stock has increased by 23% year to date and by 63% over the previous 12 months. (In the last two weeks, the stock has crossed the 15 percent trading threshold twice.)
Tied to Dubai property’s growth
The company anticipates continuing to resolve its legacy issues in the future, with the resolution of its debt resettlement agreement with Emirates NBD being of utmost importance. Naturally, the expansion that is currently sweeping through the Dubai real estate market will offer support.
“As Dubai’s real estate market continues its continuous growth, the group aims to strengthen its expansion plans,” is how the company says it.