Union Properties has reported impressive financial results for the first quarter of 2025, marking an 18.2% surge in revenue while successfully repaying AED 179 million (approximately US$48.75 million) of legacy debt. This positive performance reflects the company’s ongoing commitment to financial restructuring and strong operational execution, positioning it for continued growth in the competitive real estate market.
Financial Highlights for Q1 2025
In the first quarter of 2025, Union Properties announced a noteworthy 18.2% increase in revenue, bringing it to AED 163 million (US$44.4 million), up from AED 138 million (US$37.6 million) recorded in the same period last year. This upward trajectory in revenue showcases the effectiveness of the company’s strategies amid a recovering market.
Growth in Gross Profit
Driving this revenue increase was a rise in operational efficiency and sustained demand, culminating in a gross profit of AED 42.8 million (US$11.65 million). This represents a remarkable 25.3% growth compared to AED 34 million in Q1 2024. The company’s strong gross profit indicates robust operational performance, setting a solid foundation for further advancements.
Future Prospects and Debt Management
Moving forward, Union Properties anticipates continued revenue growth, bolstered by strategic initiatives and forthcoming project launches. The company stated that it expects “significant increases” in revenue each quarter. In line with its financial restructuring strategy, Union Properties has made substantial strides in reducing its bank debt, with plans to pay an additional AED 159 million (approximately US$43.3 million) in the second quarter. Notably, the AED 179 million repayment builds upon the AED 723 million (US$197 million) effectively settled in 2024.
CEO’s Insights on Growth and Strategy
Amer Khansaheb, CEO and Board Member at Union Properties, expressed optimism about the company’s position as it enters 2025, stating, “Union Properties has entered 2025 with strong momentum, underpinned by a robust first quarter that reinforces the strength of our business model and the trust of our stakeholders.” He further elaborated that the company’s solid revenue growth, in conjunction with strategic debt management, showcases the effectiveness of its long-term roadmap.
Khansaheb emphasized ongoing efforts in enhancing project launches and asset optimization, noting, “We are creating a dynamic platform for sustainable growth. As we look ahead, Union Properties is exceptionally well-positioned to seize emerging opportunities in the UAE’s thriving real estate sector.” This proactive outlook aligns with the company’s commitment to staying financially agile and resilient in a competitive landscape.
In a recent filing with the Dubai Financial Market (DFM), Union Properties reiterated its dedication to strengthening its financial standing. The firm continues to make significant progress in deleveraging its legacy debt while unveiling new development projects, reflecting a balanced and future-focused strategy. This approach not only signals the company’s progress but also positions it to maximize asset utilization and enhance liquidity in pursuit of sustained success.