For the quarter ending March 31, 2023, Union Properties PJSC (Union Properties) released its consolidated financial results.
Throughout the first quarter of 2023, Union Properties continued to successfully implement its turnaround strategy, maintaining a solid upward trend. In comparison to a net loss of AED 12.5 million during the same quarter the previous year, the company posted a net profit of AED 12.3 million in Q1 2023. Contractual revenue climbed to AED 122.1 million in the first quarter of 2023, up 16% from the same period the previous year, as the group’s businesses continued to generate strong performance improvements, aided by a booming UAE real estate market.
As part of its aim to increase profitability through prudent financial management, Union Properties made considerable efficiency improvements during the quarter. Thus, administrative and general expenses fell 21% annually to AED 16.6 million in the first quarter of 2023. In Q1 2023, operating profit climbed significantly by 335% to AED 19.8 million from the same quarter the previous year.
Commenting on the results, Mr. Amer Khansaheb, Board Member and Managing Director of Union Properties, said: “We continue to make strong progress with the implementation of our turnaround strategy, building on the significant milestones achieved in the previous year. The successful execution of our strategy is evidenced by Union Properties’ return to net profitability and its impressive 335% increase in operating profit during the quarter.
“Looking ahead we will continue to focus on driving efficiency across the group to support sustainable profitability improvements and cash flow generation. We are now in a strong position to deliver long-term value creation for our shareholders by leveraging our deep expertise, reputation, and highly sought-after land bank locations to drive growth and capitalize on the UAE’s thriving real estate market.”
Through a combination of efficiency enhancements and the development of new growth customers, Union Properties’ management is still dedicated to providing long-term values for its shareholders. The company is currently assessing a number of alternatives to make use of its highly sought-after land bank locations, including the potential to launch new ventures soon.
Management’s focus on efficiency has enabled Union Properties to preserve its book value at AED 0.46 per share as of 31 March 2023.