In Q2 2022, Union Properties Earned Dh0.285 Million In Net Profit

Union Properties said that the company recorded Dh0.285 million net profits that were Dh26 million in the same quarter last year.

After witnessing a net loss of Dh12 million in the preceding quarter, the property firm returned to profits during the April-June quarter. It incurred the finance costs related to the legacy debt of Dh16 million, representing 14% of the company's total consolidated costs.

"Debt restructuring remains a key priority for Union Properties’ management," the statement said.

The company also obtained Dh3 million in profits in the second quarter a loss of Dh36 million in the same period the previous year. The company focused on the management to bring efficiency and thus enabled Union Properties to preserve its book value at Dh1.9 billion. The company focused on bringing growth at the subsidiary level.

The company took so many initiatives for the revival of business performance that are not just cost efficient but the one that helped in building a solid foundation for future growth and creating value for shareholders.

The company owns a vast land bank in a fast-developing location of the emirate and it remains “cautiously optimistic” as it explores several development options that could generate long-term value for its investors, Mr. Khansaheb said.

Union Properties is working hard in making the progress with the execution of its turnaround strategy, delivering significant cost efficiencies in the second quarter of the year. The company’s administrative and general expenses declined by 42% to Dh17 million in Q2 2022 and by 32% to Dh37 million in H1 2022, in comparison to the same time last year.

UP is working hard to recover from the losses and for that the ongoing strategies like the reorganization of business units improve the profitability and proper asset utilization. "The company expects to realize additional one-time cost savings of Dh7 million over the next 12 months from the reorganization," the statement said. Then the turnaround strategy is showing the sign of success with the continued improvement in the financial performance.