Dubai real estate company Union Properties kept up its amazing financial comeback. The company’s new audited financial results for the fiscal year 2024 showed impressive growth and financial health. Let’s see their amazing FY2024 results.
Record-Breaking Financial Results
Union Properties didn’t just meet expectations; it exceeded them by a wide margin. The company showcased an operating profit of AED 161.8 million ($44.06 million) in 2024, a 59% increase from the year before. The total comprehensive income looks even better. It reached AED 395 million ($107.56 million). This number includes all parts of the company’s financials, both from its operational and non-operational factors.
Revenue Growth and Customer Contracts
While the jump in operating profit catches the eye, Union Properties also saw growth in its revenue from customer contracts. The company reported AED 528.7 million ($144 million) revenue in 2024, an increase from AED 508 million ($138.33 million) in 2023. This small rise in revenue shows the company’s ability to maintain and grow its customer base.
Debt Restructuring
One of the key factors in Union Properties’ turnaround has been its debt restructuring success. The company paid back a total of AED 723 million ($196.9 million) in 2024. This bold strategy to cut debt has greatly affected the company’s financial health and future outlook.
This debt restructuring is clearly visible in the company’s finance costs. These costs dropped to AED 31.7 million ($8.63 million) in 2024, down from AED 114 million ($31 million) in 2023. This big drop in finance costs doesn’t just boost the company’s profits. It also frees up money for future investments and plans to grow.
Subsidiary Performance
Union Properties’ 2024 success story went beyond just the parent company. Its subsidiaries also helped boost overall revenue growth and make operations more effective. While we don’t have specifics on how each subsidiary did, their combined input has been noted as key, showing the strength of Union Properties’ varied business model.
Capital Structure Optimization
Union Properties has unveiled its intention to get the necessary approvals to wipe out its accumulated losses by reducing capital. This move will end the company’s recovery stage, leading to a strong and clear capital structure. This decision has big long-term effects, as it opens the door to possible dividend payouts.
Liquidity Boost and Asset Management
One of the good signs of Union Properties’ recovery is its current asset situation. For the first time in years, the company’s current assets now surpass its current liabilities by AED 566 million ($154.1 million). This positive cash flow gives the company more financial options and allows it to take advantage of new market opportunities.
The company’s success in selling land played a big part in this improved cash flow. Union Properties sold AED 1.3 billion ($350 million) worth of land. This step boosted its cash reserves and allowed it to pay off debt.
Leadership Insights
Amer Khansaheb, CEO and Board Member at Union Properties, shared his thoughts on the company’s results and what’s next. He said the strong financial results came from Dubai’s comparative real estate market and ongoing operational improvements within the company.
Khansaheb highlighted key achievements such as improved liquidity, growth in operating profit, the success of subsidiaries, and the launch of new projects. All this shows Union Properties wants to give value to its investors. His words show a leadership team proud of what they’ve done and wants to keep this good streak going.
Future Outlook: Big Plans for 2025 and Beyond
Union Properties isn’t sitting back. The company has expressed confidence in its ability to sustain its commitment to growth and innovation in 2025 and beyond. As part of a big AED 6 billion ($1.63 billion) plan to develop, Union Properties aims to start two new projects soon.
These upcoming projects, worth AED 4 billion ($1.1 billion), show the company’s positive view of Dubai’s property market. Khansaheb stressed that 2025 will be on community growth and sustainable development. And Union Properties are going to follow that trend.
