Union Properties, a renowned developer in Dubai, has confirmed its strong comeback with impressive financial results, indicating a significant turnaround in its business operations. The company’s commitment to enhancing corporate governance and transparency has been pivotal in achieving a substantial increase in its net profit for 2023.
The developer’s financial results for the year are a clear indication of a business regaining its momentum. Union Properties reported a net profit of Dh837 million, a remarkable jump from the Dh29.9 million recorded a year earlier. This increase is attributed to several factors, including a gain in the valuation of investment properties, which surged to Dh505 million from Dh25.9 million. Additionally, other income contributed Dh401 million to the year’s total.
The company’s revenue from contracts with customers also saw a notable increase, reaching Dh508 million, up from Dh419 million in the previous year. This was achieved while maintaining a controlled approach to costs, which were recorded at Dh93 million compared to Dh347 million.
The resurgence of Union Properties is not going unnoticed in the financial markets. The company’s stock, listed on the Dubai Financial Market (DFM), has seen an upward trajectory, increasing by 63 percent in the last 12 months and 23 percent year-to-date. The stock has performed exceptionally well, hitting the 15 percent upper limit in trading on two recent occasions.
The future looks promising for Union Properties, particularly in light of the ongoing growth in Dubai’s real estate market. The company is focused on addressing its legacy issues, with a priority on clearing its debt resettlement deal with Emirates NBD. The robust growth of the wider Dubai property market is expected to provide additional support for the company’s expansion plans.
Union Properties’ statement reflects this optimism: “As Dubai’s real estate market continues its continuous growth, the group aims to strengthen its expansion plans.” This comeback story is not just about overcoming past challenges but also about seizing new opportunities in a thriving real estate market. With its improved governance and strategic focus, Union Properties is well-positioned to capitalize on the positive trends in Dubai’s property sector.
