UAE developer Union Properties has reported a net profit of AED825,000 for the third quarter, compared to a net loss of AED31 million last year, thanks to its turnaround strategy that continues to show positive results with good progress on cost efficiencies.

 

Announcing its consolidated financial results for the ninemonth and three-month period ended  September 30, 2022, Union Properties said revenue from contracts with customers increased by 3% to AED101 million in Q3 2022, 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 AED7.1 million, from a loss of AED39.9 million in the same period last year.

 

On the results, Amer Khansaheb, Board Member and Managing Director, said: "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."

 

"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," noted Khansaheb.

 

Union Properties said it continues 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% year-on-year to AED 16.8 million in Q3 2022, and by 39% to AED 54 million in 9M 2022, compared to the same period last year, it stated.

 

The continued efficiency and productivity achieved across the business builds on the momentum from recent major milestones, including the successful completion of the AED595 million debt restructuring plan and subsidiary ServeU being awarded 58 new contracts worth AED 270 million. 

 

The company remains focused on reducing the overall level of debt in the business, said Khansaheb.

 

Management’s focus on efficiency has enabled Union Properties to preserve its book value at AED1.9 billion, equivalent to AED 0.446 per share, he added.-TradeArabia News Service