Dubai, UAE – Union Properties, a UAE-based real estate developer, reported a net profit of AED 12.3 million ($3.3 million) in Q1 2023, compared to a net loss of AED 12.5 million ($3.4 million) during the same period last year.
Revenue from contracts with customers increased to AED 122.1 million ($33.21 million) in Q1 2023, up 16 percent compared to the same period last year, as the group’s subsidiaries continued to deliver robust performance improvements, supported by a thriving real estate market in the UAE.
As a result, administrative and general expenses declined 21% year-on-year to AED 16.6 million ($4.5 million) in Q1 2023.
The company attributed its success to the continued implementation of its turnaround strategy, which focused on driving efficiency and enhancing profitability through fiscal prudence.
As part of this strategy, Union Properties achieved a 21 percent decline in administrative and general expenses and a 335 percent increase in operating profit of $5.39 million.
The company is now focusing on driving long-term value creation for shareholders by leveraging its expertise, reputation, and highly sought-after land bank locations to capitalize on the UAE’s thriving real estate market.
Union Properties is evaluating various opportunities, including launching new developments in the near future, to continue to grow its business. The company’s book value per share was preserved at AED 0.46 as of March 31, 2023.