The developer is continuing to see the positive benefits of its business Turnaround Strategy, a spokesperson said
Developer Union Properties has reported a net profit of US $224,000 for the third quarter of the year, compared to a net loss of $8.44mn last year. The developer attributed the upturn in performance to its turnaround strategy, which continues to show positive results, with good progress made on cost efficiencies.
In a statement, Union Properties said that its consolidated financial results for the nine months and three-month period ending 30 September 2022, saw revenue from contracts with customers increase by 3% to $27.5mn in Q3 2022.
The group’s subsidiaries delivered healthy performance improvements that were supported by strong market dynamics in the UAE’s real estate sector, it added.
In May 2022, the developer said it saw a 7.6% increase in revenues in Q1 2022.
The developer’s operating profit in the nine-month period increased significantly to $1.93mn, from a loss of $10.8mn in the same period last year, it said.
On the results, Amer Khansaheb, Board Member and Managing Director stated, “We have maintained our strong growth trajectory in the third quarter, building on the positive momentum in the first six months of 2022. We are continuing to see the positive benefits of our business Turnaround Strategy and remain confident that we will see further progress in the months ahead. We remain focused on driving growth and delivering cost efficiencies, particularly at a subsidiary level. Looking ahead, we are cautiously optimistic as we explore several development options that we expect to generate long term value for our investors.”
Union Properties also highlighted the continued progress made in the execution of its turnaround strategy during the quarter, pointing out that it has delivered significant cost efficiencies.
In early August 2022, the firm saw net profit for Q2 2022 after a healthy performance from its subsidiaries.
Its administrative and general expenses were reduced by 50% year-on-year to $4.57mn in Q3 2022, and by 39% to $14.7mn over the first nine months of 2022, compared to the same period last year, it stated.
The continued efficiency and productivity achieved across the business builds on the momentum from recent major milestones, including the successful completion of the $162mn debt restructuring plan and subsidiary ServeU being awarded 58 new contracts worth $73.5mn, Khansaheb added, though he asserted that the company remains focused on reducing the overall level of debt in the business.
He concluded by stating that Union Properties’ management remains focused on maintaining the efficiencies that have enabled the company to preserve its book value at $517.2mn, equivalent to AED 0.446 per share.