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Dubai-based developer Union Properties swung to a first-quarter profit on the back of lower finance costs as the economy recovers from the coronavirus pandemic.
Net profit for the three months ending March 31 reached Dh5.6 million ($1.52m), compared with a loss of Dh121.9m during the same period last year, the company said in a statement to the Dubai Financial Market, where its shares trade.
Finance costs during the period fell 42 per cent to Dh22.6m and direct costs dropped 6 per cent to Dh77.7m. Administrative and general expenses also fell 15 per cent to Dh25.3m.
“Our results . represent an encouraging start for this year,” Khalifa Hassan Al Hammadi, chairman of Union Properties, said. “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 have sought out to optimise our cash flows by adopting a flexible policy to adapt to the economic changes.”
DUBAI: The developer of Motor City in Dubai has reported a 5.6 million dirhams ($1.5 million) net profit in the first quarter of 2021 – recovering from a net loss of 121.9 million dirhams in the same period last year. Dubai-listed Union Properties focused on improving key operational activities across the group, including a significant reduction in direct and administrative
Union Properties records $1.52m Q1 net profit
DUBAI, 1 hours, 23 minutes ago Union Properties, the iconic property developer with a portfolio of diversified subsidiaries, announced AED5.6 million ($1.52 million) in net profit for the first quarter of 2021 compared to a net loss of AED121.9 million for the same period in 2020. The company has attributed this profit to a number of key factors including the group’s focus on capturing group synergies through improving key operational activities across the group, a significant reduction in overall group costs including a decrease in direct costs and administrative costs of 6.4% and 14.2% respectively year on year, as well as the group’s commitment to paying a large portion of its debt which has resulted in a staggering reduction in finance costs of 42.1% year on year.
Dubai stocks advanced for a fourth straight session riding on an earnings-driven rally while Abu Dhabi stocks headed marginally lower before the Eid holidays. Saudi Arabian shares moved up, ending three days of trading in red.
Dubai Financial Market clawed back intra-day losses as banking and real estate shares rebounded to help the index close higher by 0.4 per cent to 2,696 points. Monday s advance marked the gauge s sixth rise in the last seven sessions after upbeat first-quarter results set off the series of gains.
The biggest single boost came in from Emirates NBD, gaining above 1 per cent, while Union Properties and Gulf Navigation moved up ahead of earning announcements.