Dubai’s Union Properties turns in Dh18.3 million Q2 2024 net profit; plans to launch projects worth Dh5 billion
UP subsidiary is exploring possibility of acquiring an outsourcing company
Dubai: Dubai developer Union Properties has reported a Q2 2024 net profit of Dh18.3 million, demonstrating the effectiveness of its robust operational strategies and cost management. This strong performance underscores the company's successful turnaround after its fair share of troubles in recent years.
The encouraging results have been fueled by high property sales and Dubai’s upward trend in the real estate market, said Amer Khansaheb, CEO and Board Member at Union Properties PJSC. “We aim to solidify our position in the UAE’s real estate sector and launch projects worth Dh5 billion in the short to medium term,” he added.
The DFM-listed company said it witnessed “a successful Q2 2024, “with revenue from contractual engagements increasing by 7.6 per cent to Dh128 million, up from Dh 119 million in Q2 2023.
The Group’s subsidiaries also contributed significantly, achieving an accumulated gross profit of Dh 52.6 million, which reflects a 15 per cent increase in H1 2024, compared to Dh 45.6 million during H1 2023.
“As a direct result of restructuring the long-term debt with the banks, during H1 2024, the company was able to reduce its financial costs from Dh 56 million in 2023 to Dh 15 million in 2024,” it said in a statement. During H1 2024, the company reached an accumulated profit of Dh 34.8 million, doubling its earnings compared to Dh 17.7 million during the same period in 2023.
Acquisition plans
Moreover, one of Union Properties’ subsidiaries is exploring the possibility of acquiring an outsourcing company, which will potentially enhance the value of the company’s assets and improve its profitability.
Khansaheb said, “The remarkable second quarter financial results, fuelled by high property sales and Dubai’s real estate market uptrend, reflect our dedication to excellence and strategic growth. These achievements underscore our ability to navigate complex business dynamics.”
He added, “Union Properties is focused on driving sustainable growth and enhancing shareholder value through strategic investments and innovative projects.”