After Dh837m net profit, Dubai's Union Properties confirms its comeback is well and truly on

Dubai: The Dubai developer Union Properties says it’s comeback push is starting to deliver the results that shareholders and the local real estate market wants to see.

“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 2023 financials do present a picture of a business that is getting the act together. Profit for the year cleared Dh837 million against Dh29.9 million a year before. The operating profit was Dh101 million, compared to Dh10 million in 2022. (There was a gain on valuation of investment properties, which soared to Dh505 million from Dh25.9 million. This boosted the full-year 2023 net profit, as did other income of Dh401 million.)

Revenue from contracts with customers came to Dh508 million from Dh419 million. Costs were kept under a fair degree of control, at Dh93 million vs. Dh347 million.

How the UP stock is performing

The upbeat tone of the management and in the 2023 results could see some reflection in the DFM-listed stock. Even otherwise, the UP stock is up 63 per cent last 12 months and by 23 per cent year-to-date. (In recent weeks, there were two occasions when the stock hit the 15 per cent upper limit in trading.)

Tied to Dubai property’s growth

Going forward, the company expects to clean up its legacy issues further, with clearing its debt resettlement deal with Emirates NBD being a priority. Support will obviously be provided from the growth coursing through the wider Dubai property market.

“As Dubai’s real estate market continues its continuous growth, the group aims to strengthen its expansion plans,” is how the company says it.

More to follow...