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Union Properties posts Dh825k profits in Q3 as turnaround strategy continues to drive results

The group’s subsidiaries delivered healthy performance improvements that were supported by strong market dynamics in the UAE’s real estate sector

Union Properties on Tuesday reported a net profit of Dh825,000 in third quarter of 2022 compared with a net loss of Dh31 million in the prior year period.

In a statement, the company said revenue from contracts with customers increased by three per cent to Dh101 million in July-September 2022 quarter compared to the same period last year as the group’s subsidiaries delivered healthy performance improvements that were supported by strong market dynamics in the UAE’s real estate sector.

Operating profit in the nine-month period increased significantly to Dh7.1 million from a loss of Dh39.9 million in the same period last year, according to the company statement.

“We have maintained our strong growth trajectory in the third quarter building on the positive momentum in the first six months of 2022. We are continuing to see the positive benefits of our business turnaround strategy and remain confident that we will see further progress in the months ahead,” Amer Khansaheb, Board Member and Managing Director of Union Properties, said.

“We remain focused on driving growth and delivering cost efficiencies, particularly at a subsidiary level. Looking ahead, we are cautiously optimistic as we explore several development options that we expect to generate long term value for our investors,” he said.

Union Properties continued to make strong progress in the execution of its turnaround strategy during the quarter delivering significant cost efficiencies. Administrative and general expenses declined by 50 per cent year-on-year basis to Dh16.8 million in third quarter of 2022 and by 39 per cent to Dh54 million in first nine months of 2022 compared to the same period last year.

The continued efficiency and productivity achieved across the business builds on the momentum from recent major milestones, including the successful completion of the Dh595 million debt restructuring plan and subsidiary ServeU being awarded 58 new contracts worth Dh270 million. The company remains focused on reducing the overall level of debt in the business.

Management’s focus on efficiency has enabled Union Properties to preserve its book value at Dh1.9 billion, equivalent to Dh0.446 per share.

On October 24, 2021, Union Properties disclosed to Dubai Financial Market an arbitration claim filed by one of its subsidiaries, which is still being reviewed by the arbitral tribunal. As part of the company’s commitment to transparency, it will continue to keep the market and shareholders updated on any further developments.

— muzaffarrizvi@khaleejtimes.com