Dubai-based Union Properties has posted a AED5.6 million ($1.5m) net profit for the first quarter of the year, turning around a AED121.9m ($33.2m) loss for the same period in 2020.
However, accumulated losses were announced at almost AED2 billion ($545m), which was attributed to the “decline of the real estate sector in the UAE” as well as the ongoing impact of the coronavirus pandemic.
According to a posting to the Dubai Financial Market (DFM) on Sunday, the profit was a result of a number of factors, including a “significant reduction” in overall group costs, decreasing direct costs and administrative costs by 6.4 percent and 14.2 percent respectively year-on-year.
The statement added that Union Properties had also paid a “large portion” of its debt, reducing finance costs by 42.1 percent yoy.
Chairman of the board of directors, Khalifa Hassan Al Hammadi, said: “Our results for the financial period ending on March 31, 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 P.J.S.C. have sought out to optimise our cash flows by adopting a flexible policy to adapt to the economic changes.
Khalifa Hasan Ali Saleh Al Hammadi is Chairman at Union Properties Pjsc
“In the United Arab Emirates, we have been fortunate with wise leadership that has dealt with the spread of the pandemic and its economic repercussions with a high level of professionalism and grace. This success that was attributed to extraordinary measures that balanced the nation, citizens, and residents’ interests has further propelled the nation to become one of the first countries leading the global economic recovery, God willing.”
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