Union Properties has announced revenues of $28.8mn in Q1 2022, up by 7.6% compared to the $26.7mn posted last year. This increase in revenues has been driven by the continued rebound of Dubai’s real estate sector and a significant improvement in performance from the group’s subsidiaries, the developer said in a statement.
Announcing its financial results for the quarter ended March 31, 2022, Union Properties said it had recorded a net loss of $3.40mn during the quarter compared to a net profit of $1.52mn last year, primarily due to finance costs of $4.62mn related to legacy debt. It added that the new management team continues to make progress on restructuring. The comparative period in 2021 also included one-off gains of $1.87mn from the sale of an asset, the statement continued.
On the company’s performance, Managing Director Amer Khansaheb said the group saw an improved quarter for Union Properties as it increased the revenues and drove cost efficiencies across the business.
“We are also beginning to see the benefits of our business turnaround strategy and are confident that we will see further positive progress in the months ahead. In the meantime, our focus remains on addressing the company’s legacy issues head on, restructuring our debt and rebuilding shareholder trust,” he said.
Union Properties subsidiary, Dubai Autodrome, reported a 38% year on year increase in revenues and 61.2% increase in net profit this quarter due to the launch of the Motorsport Business Park 2 warehouse complex. There was also increased uptake in corporate group packages and major international motorsport events that took place during the quarter, the company stated.
As per the statement, the earnings before interest and tax (EBIT) remain in the same range, amounting to $1.36mn compared to the same quarter in 2021, despite the one-off gains of $1.87mn due to the sale of assets in 2021 and additional legal costs of $598,949 related to claims from a prior period in Q1 2022 which is reflecting management’s focus on optimising costs, restructuring its operations, and delivering efficiencies across the business.
This positive progress led to a 21.2% year-on-year decline in administrative and general expenses in Q1, it highlighted.
The merging of property management and cold store management operations with EDACOM was a significant factor in reducing costs and improving operational efficiencies this quarter, the statement concluded.
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