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Leading Dubai developer Union Properties has returned to profitability in 2022 with a net profit of AED 30 million (US$ 8.1 million), compared with a net loss of AED 966.8 million (US$ 263 million) in the previous year, while its revenue Soared 5% due to its turnaround strategy.
In announcing its consolidated financial results for the year ended 31 December 2022, Union Properties said its revenue from contracts with customers will increase by 5% year-on-year to AED 419.2 million in 2022 as the group’s subsidiaries continue to significantly improve performance Mu is supported by strong positive momentum in the UAE real estate sector.
Union Properties has made substantial progress in its efficiency strategy, including the consolidation of its three existing business units – Edacom Owners Management Association, Uptown Mirdif Mall and Al Etihad Cold Store – into a single entity, Edacom Asset Management.
This unlocks significant synergies across the enterprise and improves resource and asset utilization. As a result, administrative and general expenses will fall by 39% year-on-year to AED 80.5 million in 2022.
Operating profit for the year rose sharply to AED 10.2 million, compared to a loss of AED 34.1 million in the previous year.
Commenting on the results, Managing Director Amer Khansaheb said: “2022 will be a landmark year for Union Properties as its new management team successfully executes its turnaround strategy and returns the company to profitability. We complete completed the debt restructuring process and is well-positioned to leverage our deep expertise, reputation and sought-after land bank location to drive growth and capture opportunities in the UAE’s thriving real estate market.”
“Union Properties now has a solid foundation to deliver long-term and sustainable value to its shareholders and is evaluating a number of potential development opportunities,” he noted.
During the year, Union Properties successfully completed a AED595 million debt restructuring, marking a major milestone in resolving legacy debt with most lenders.
Restructuring supports improved profitability and cash flow generation by effectively reducing the company’s financing costs. In addition, it strengthens Union Properties’ balance sheet, allowing it to raise additional capital for future property developments.-TradeArabia News Service
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