Union Properties, a leading Dubai developer, has returned to profitability in 2022 with a net profit of AED30 million ($8.1 million) compared to a net loss of AED966.8 million ($263 million) the previous year, while its revenue surged by 5% thanks to its turnaround strategy.
Announcing its consolidated financial results for the year ended December 31, 2022, Union Properties said it revenue from contracts with customers increased by 5% year-on-year to hit AED419.2 million in 2022 as the group’s subsidiaries continued to deliver significant performance improvements supported by strong positive momentum in the UAE’s real estate sector.
Union Properties made substantial progress with its efficiency strategy including merging three of its existing business units - Edacom Owners Management Association, Uptown Mirdif Mall, and Al Etihad Cold Store - into one single entity, Edacom Asset Management.
This unlocked significant synergies across the business and improved resource and asset utilization. As a result, administrative and general expenses declined 39% year-on-year to AED80.5 million in 2022.
Operating profit for the year increased significantly to AED10.2 million compared to a loss of AED34.1 million in the previous year.
Commenting on the results, Managing Director Amer Khansaheb said: "2022 was a milestone year for Union Properties as its new management team successfully implemented their turnaround strategy and restored the company to profitability. We completed our debt restructuring process and are in a strong position to leverage our deep expertise, reputation, and highly sought-after land bank locations to drive growth and capture opportunities in the UAE flourishing real estate market."
"Union Properties is now on a solid foundation to deliver long term and sustainable value for its shareholders and is evaluating a number of potential development opportunities," he noted.
During the year, Union Properties successfully completed AED595 million debt restructuring, marking a major milestone by resolving legacy liabilities with the majority of its lenders.
The restructuring supports improved profitability and cash flow generation by effectively reducing the company’s financing costs. Additionally, it strengthens Union Properties’ balance sheet and enables it to raise additional financing for future real estate developments.-TradeArabia News Service
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