Dubai [Abu Dhabi], May 11 (/WAM): Union Properties PJSC (Union Properties) announced its consolidated financial results for the quarter ended March 31, 2023.
Union Properties maintained strong positive momentum during the first quarter of 2023 as it continued to successfully implement its turnaround strategy. The company reported a net profit of AED 12.3 million in Q1 2023 compared to a net loss of AED 12.5 million during the same period last year. Revenue from contracts with customers increased to AED 122.1 million in Q1 2023, up 16 per cent compared to the same period last year, as the group's subsidiaries continued to deliver robust performance improvements, supported by a thriving real estate market in the UAE.
Union Properties delivered significant efficiency improvements during the quarter as part of its strategy to enhance profitability through fiscal prudence. As a result, administrative and general expenses declined 21 per cent year-on-year to AED 16.6 million in Q1 2023. Consequently, operating profit increased considerably by 335 per cent to AED 19.8 million in Q1 2023, compared to the same period last year.
Commenting on the results, Amer Khansaheb, Board Member and Managing Director of Union Properties said: "We continue to make strong progress with the implementation of our turnaround strategy, building on the significant milestones achieved in the previous year. The successful execution of our strategy is evidenced by Union Properties' return to net profitability and its impressive 335 per cent increase in operating profit during the quarter.
"Looking ahead we will continue to focus on driving efficiency across the group to support sustainable profitability improvements and cash flow generation. We are now in a strong position to deliver long-term value creation for our shareholders by leveraging our deep expertise, reputation, and highly sought-after land bank locations to drive growth and capitalise on the UAE's thriving real estate market."
Union Properties' management remains committed to delivering long-term values for its shareholders through a combination of efficiency improvements and the pursuit of new growth opportunities. The company is in the process of evaluating various opportunities to leverage its highly sought-after land bank locations including potentially launching new developments in the near future.
Management's focus on efficiency has enabled Union Properties to preserve its book value at AED 0.46 per share as of March 31, 2023. (/WAM)
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor