UAE Business: Union Properties returns to profit in Q2; cost savings help – Gulf Digital News

UAE Business: Union Properties returns to profit in Q2; cost savings help – Gulf Digital News

Dubai-based developer Union Properties has reported a net profit in Q2 2022 as it turnaround strategy was able to achieve significant cost savings.

Revenue from contracts with customers remained stable at AED99 million in Q2 2022 compared to the same period last year, as the group’s subsidiaries delivered healthy performance improvements, supported by strong market dynamics in the UAE’s real estate sector. Gross profit for the same period increased 7% to AED14 million, the company said.

Union Properties continued to make strong progress in the execution of its turnaround strategy, delivering significant cost efficiencies during the second quarter of the year. Administrative and general expenses declined by 42% year-on-year to AED17 million in Q2 2022, and by 32% to AED37 million in H1 2022, compared to the same period last year.

As part of its ongoing strategy to improve efficiency and productivity across the business, Union Properties merged three of its existing business units - Edacom Owners Management Association, Uptown Mirdiff Mall, and Al Etihad Cold Store - into one single entity, Edacom Asset Management. The consolidation is expected to improve profitability by driving efficient resource and asset utilization, economies of scale and cost rationalization.

The company expects to realise additional one-time cost savings