Union Properties, an outstanding developer in Dubai, asserts that its recuperation tasks yield the preferred outcomes for buyers and the nearby real estate marketplace.
“The increase in net income for 2023 is a testament to Union Properties’ steadfast dedication to transparency,” the company stated in a press launch.
Union Properties emphasized its ongoing efforts to enhance governance, reform corporate culture, review corporate ethics, appropriately disclose corporate information, and strengthen compliance-focused management.
The financial statements for 2023 indicate that Union Properties is indeed making significant strides in its recovery efforts. The year’s profit exceeded Dh29.9 million, reaching Dh837 million, a substantial improvement compared to Dh10 million in 2022. Operating profit saw a noteworthy increase, reaching Dh101 million, compared to the previous year.
One significant contributing factor to the increased net profit was the gain in the valuation of investment properties, rising from Dh25.9 million to Dh505 million. Additionally, other income amounting to Dh401 million also contributed to the overall net profit for the year 2023.
Contract revenue with customers experienced a notable increase from Dh419 million to Dh508 million, indicating improved business performance. Furthermore, expenses were well-managed, amounting to Dh93 million compared to Dh347 million in the previous year, demonstrating effective cost management practices.
How the UP stock is performing
The positive outlook communicated by Union Properties’ management and the favorable 2023 financial results likely have influenced the performance of its DFM-listed stock. Indeed, the UP stock has demonstrated significant growth, increasing by 23% year to date and by an impressive 63% over the previous 12 months. In the last two weeks alone, the stock has crossed the 15 percent trading threshold twice, indicating substantial investor interest and confidence in the company’s prospects.
Tied to Dubai property’s growth
The company anticipates ongoing resolution of its legacy issues in the future, with particular emphasis placed on resolving its debt resettlement agreement with Emirates NBD. Additionally, the current expansion trend in the Dubai real estate market is expected to provide further support to Union Properties.
“As Dubai’s real estate market experiences sustained growth, the group is committed to enhancing its expansion plans,” stated the company.
