Dubai's Union Properties' 9-month profit at Dh53.14m, makes more cuts to legacy debts
Dubai developer makes steady progress in its turnaround plans, especially on cost and debt
Dubai: Union Properties saw its Q3-2024 profit drop to Dh18.37 million, but the overall 9-month performance shows the Dubai developer being on track to pull itself into a full-scale turnaround. In the July-September period, net profit dipped from last year’s Dh19.73 million.
When it comes to the first nine months, the signs are quite upbeat, with profit tally at Dh53.14 million from Dh37.44 million.
More progress on paying off debts
Most heartening for Union Properties, which recently launched a new project at Motor City as part of its comeback strategy, is that it has further cut down on its debt exposures. This meant a 56.5% reduction in its legacy bank debt to now total Dh682 million.
“The company successfully lowered its financial costs from Dh85 million in 2023 to Dh22 million in 2024 to date by restructuring its long-term debt with banks and paying them down,” said a statement.
That meant current assets have exceeded liabilities by Dh326.2 million, which ‘indicates a strong liquidity position and a very positive sign of financial health’. And that it is ‘well-equipped to cover its short-term obligations’.
The Dh6 billion target
"Our goal is to launch projects worth Dh6 billion in the next 18 months, adding to Dubai’s extensive property portfolio," said Amer Khansaheb, CEO. "We are optimistic that Dubai’s robust economy, state-of-the-art infrastructure and favourable investment ecosystem can help us achieve our goals and strengthen our leading position in the real estate sector."