Dubai developer Union Properties swings to $8.2mln net profit

Dubai developer Union Properties swings to $8.2mln net profit

Dubai real estate developer Union Properties has swung to a net profit on the back of positive trends in the UAE’s property market, according to a disclosure on Tuesday.

Total net profit for the year ended 31 December 2022 reached around 30 million UAE dirhams ($8.2 million), a turnaround from the 966.8 million UAE dirhams loss recorded in the previous year.

Revenues for the full year also rose 5.1% to 419.2 million UAE dirhams from 398.7 million UAE dirhams in 2021.

“[The revenue increase was] due to a significant improvement in performance in the Group’s subsidiaries and continued growth in the UAE’s real estate sector,” the company said in a disclosure on the Dubai Financial Market (DFM) on Tuesday.

The company said its “turnaround strategy” also continued to show positive results, with its basic and diluted earnings per share for 2022 reaching 0.007 UAE dirhams.

The value of the company’s total assets dipped by 136 million UAE dirhams compared with the previous year, while shareholders’ equity increased by 30 million UAE dirhams.

Late last year, the developer announced its first project launch since 2015, the 1.6 billion UAE dirhams mixed-use development called Takaya in Dubai Motor City. The developer recently completed a debt restructuring.

(Reporting by Cleofe