Union Properties reports recovery with net profit of $1.5mn in Q1 2021 – MEP MiddleEast

Union Properties reports recovery with net profit of $1.5mn in Q1 2021 – MEP MiddleEast

UAE-based real estate developer Union Properties PJSC, which has a portfolio of diversified subsidiaries, has reported a net profit of $1.5mn (AED5.6mn) for Q1 2021, compared to a net loss of $33.18mn (AED121.9mn) for the same period in 2020.

The company has attributed the profit to a number of key factors including the group’s focus on capturing group synergies through improving key operational activities across the group, a significant reduction in overall group costs including a decrease in direct costs and administrative costs of 6.4% and 14.2% respectively year on year, as well as the group’s commitment to paying a large portion of its debt which has resulted in a staggering reduction in finance costs of 42.1% year on year.

Commenting on the results, the chairman of the Board of Directors, HE Khalifa Hassan Al Hammadi, said: “Our results for the financial period ending on 31-03-2021 represent an encouraging start for this year. While the world is still struggling to recover from the economic and health implications imposed by the spread of the COVID-19 pandemic, we at Union Properties PJSC have sought out to optimise our cash flows by adopting a flexible policy to adapt to the economic changes.”

“In the UAE, we