Leading Dubai developer Union Properties maintained strong positive momentum for the first quarter as it continued to successfully implement its turnaround strategy. It posted a net profit of AED12.3 million ($3.34 million) compared to a net loss of AED12.5 million ($3.4 million) last year.

 

Announcing its consolidated financial results for the quarter ended March 31, 2023, Union Properties said its  revenue from contracts with customers increased to AED122.1 million, up 16% over last year, as the group’s subsidiaries continued to deliver robust performance improvements, supported by a thriving real estate market in the UAE.

 

The Emirati developer delivered significant efficiency improvements during the quarter as part of its strategy to enhance profitability through fiscal prudence. 

 

As a result, administrative and general expenses declined 21% year-on-year to AED16.6 million in Q1. Consequently, operating profit increased considerably by 335% to AED19.8 million compared to the same period last year.

 

On the group's performance, Managing Director Amer Khansaheb said: "We continue to make strong progress with the implementation of our turnaround strategy, building on the significant milestones achieved in the previous year."

 

"The successful execution of our strategy is evidenced by Union Properties’ return to net profitability and its impressive 335% increase in operating profit during the quarter," he noted.

 

"Looking ahead we will continue to focus on driving efficiency across the group to support sustainable profitability improvements and cash flow generation," observed Khansaheb. 

 

"We are now in a strong position to deliver long-term value creation for our shareholders by leveraging our deep expertise, reputation, and highly sought-after land bank locations to drive growth and capitalise on the UAE’s thriving real estate market," he added.-TradeArabia News Service