Dubai-based real estate developer Union Properties PJSC saw profits increase by 483 percent in the second quarter of the year, in comparison to Q1, reaching AED26.83m ($7.3m), as the emirate’s real estate market continues to recover from the impact of coronavirus.
It comes after Union Properties posted an AED5.6m ($1.5m) net profit for the first quarter of the year, back in May, turning around a AED121.9m ($33.2m) loss for the same period in 2020.
“During the second quarter of this year, we witnessed a significant positive shift in many business activities, genuine estate in the UAE in general and in Dubai in particular, which confirms that we are on track to overcome the adverse effects of the pandemic and are now looking forward to the most significant event in the region, Expo 2020, which launches in less than 50 days,” said Khalifa Hassan Al Hammadi, chairman of the board of directors.
“There is no doubt that it will be the biggest tributary in the recovery of the real estate market in the emirate of Dubai and its related activities,” he added.
Figures for the first six-months of the year were similarly bullish, with a total profit of AED32.4m ($8.8m) compared to a loss of AED160.4m ($43.6m) for the same period last year.
The developer behind the vast Motor City project reported on Sunday that revenues from customer-contracts increased to approximately AED197.5m ($53.7m) while the company’s assets rose up to AED6bn ($1.6bn). Meanwhile, financing costs witnessed a significant decrease of 32 percent compared to the same period last year.
Khalifa Hassan Al Hammadi, chairman of the board of directors at Union Properties Pjsc.
Al Hammadi added: “The positive performance of Union Properties PJSC and its subsidiaries for the second consecutive quarter is noteworthy and reaffirms the management’s endeavors and implementation of its strategy and vision to preserve shareholders’ rights and achieve the best results.
“In line with these efforts, the independent external auditor removed its qualification on the additional Gross Floor Area recovered by the management for the benefit of the company’s shareholders during the third quarter of the last year 2020, which emphasises the validity of the procedures taken by the management and dismisses all the misleading information that echoed on this subject.”
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