Steady Advancement in Turnaround Strategy with Focus on Cost and Debt Management.
Dubai-based Union Properties announced a net profit of Dh18.37 million for the third quarter of 2024, reflecting a slight decrease from last year’s Dh19.73 million for the same period. Despite this quarterly dip, the company’s performance over the first nine months of the year remains promising, with total profits rising to Dh53.14 million compared to Dh37.44 million previously.
Significant Debt Reduction Achieved:
A key highlight for Union Properties is its continued success in decreasing debt levels. The developer recently initiated a new project in Motor City as part of its recovery plan and has managed to reduce its legacy bank debt by 56.5%, bringing the total down to Dh682 million.
“In 2024, we have effectively reduced our financial costs from Dh85 million in 2023 to Dh22 million by restructuring our long-term debt with banks and making substantial repayments,” the company stated.
This debt reduction has strengthened the company’s financial standing, with current assets surpassing liabilities by Dh326.2 million. This improvement signals a robust liquidity position and indicates that Union Properties is well-prepared to meet its short-term financial obligations.
Ambitious Growth Target of Dh6 Billion:
Looking ahead, Union Properties aims to launch projects worth Dh6 billion within the next 18 months, further expanding Dubai’s extensive property portfolio. Amer Khansaheb, CEO of Union Properties, expressed confidence in the company’s prospects: “We are optimistic that Dubai’s strong economy, advanced infrastructure, and favorable investment environment will enable us to achieve our targets and reinforce our leadership in the real estate market.”
