Dubai: Union Properties on Saturday reported a net loss of Dh 38.56 million for the second quarter of 2020, lower by 68 per cent compared to the previous quarter.
The company attributed the reduction in losses to drastic cost cutting efforts. The group reduced its administrative and operational expenses to Dh58 million for the first six months of 2020 compared to Dh76 million for the same period last year.
As part of this recovery plan, the Group has also announced that it successfully negotiated and finalised a comprehensive restructuring of the largest part of its outstanding debt with various financial institutions, which will ultimately improve its overall cash-flow profile.
“In the past our Group has suffered a high level of losses, mostly due to a significant drop in the real estate sector and the mandatory ‘marked-to-market’ revaluation, which has resulted in a total net loss of Dh160.42 million for the first half of 2020,” said Khalifa Hasan Al Hammadi, the newly appointed Chairman of Union Properties.
Addressing the challenges related to the Group’s debt is the immediate priority of the new management.
“The Group’s new leadership has now a clear roadmap and we are committed to remain on the right track. We will continue to work towards the improvement of our operational efficiencies, operating cost management as well as our overall financial position. We are also actively working with select partners towards the improvement and development of our extensive land bank to create value assets with recurring cashflows, said Al Hammadi.