Dubai-based Union Properties PJSC announced its strong financial results for 1Q 2024, showing a significant recovery and success of operational strategic enhancements of the group. The net profit was posted at Dh18.3 million, returning the group to profitability from testing times in the last couple of years.
PC: PropertyNews.ae
Strong Financial Performance and Operational Efficiency
With the group having performed well in Q1 2024, this is an attestation to the company’s effective cost controls and operational strategies. The net profit has turned big-time to underline efforts of Union Properties in streaming operations and enhancing profitability. According to Amer Khansaheb, Chief Executive Officer and Board Member at Union Properties, “The results reflect the high property sales and the continuing uptrend of the Dubai property market.”.
Khansaheb noted that the firm takes a long-term view of the UAE real estate sector and commits to establishing itself in the marketplace. “We intend to solidify our position in the UAE’s real estate sector and launch projects worth Dh5 billion in the short to medium term,” he said, underlining the ambitious growth plans of the company.
Q2 2024 Successful and Revenue Climbs
Union Properties continued its sterling performance into the second quarter of 2024 and announced a 7.6 percent rise in revenues from contractual engagements. Revenue grew to Dh128 million from Dh119 million reported during Q2 2023, underlining the continuous success that the firm is having regarding leveraging the robust real estate market conditions.
Gross Profit Rises Substantially
Its subsidiaries have equally propelled the company to financial glory. Gross profit came in at Dh52.6 million for H1 2024, up 15 percent compared to Dh45.6 million for the corresponding period of 2023, driven by effective cost management and operational efficiency in its business units.
Decrease in Financial Costs; Accumulated Profit Rises
The restructuring of long-term debt with the banks has been the most essential step towards the financial turnaround of Union Properties. It sharply reduced financial costs to Dh56 million in 2023 from Dh15 million in 2024. In H1 2024, Union Properties achieved an accumulated profit of Dh34.8 million, doubling its earnings from Dh17.7 million in H1 2023.
Strategic Acquisition Plans
Looking ahead, the Union Properties is exploring a number of strategic acquisitions to drive more value and profitability for its assets. This may equally become a reality if one of the subsidiaries succeeds in a proposal placed before it to acquire an outsourcing company, which may serve to drive up the overall value and financial performance of the firm.
Future Outlook and Strategic Goals
Khansaheb pointed out that the company is focused on strategic sustainability and creation of shareholder value. “These amazing second-quarter financial results, driven by high property sales and Dubai’s uptrend in the real estate market, are a reflection of our commitment to excellence and strategic growth,” he said. “They are a testament to the fact that we can sustain complex business dynamics.”
Union Properties still adheres to its commitment to driving innovation and strategic investment for long-term growth. It is embarking on major projects that would add even more value to its offerings, thus remaining at the helm in the competitive UAE real estate sector.
