Union Properties, a leading real estate development group based in Dubai with a portfolio of diversified subsidiaries, has registered a net profit of AED509.2 million ($139 million) for the third quarter and also reduced its accumulated losses below the critical threshold of 50% to 41.8%.
Announcing its financial results for the three-month period ended September 30, 2020, Union Properties said the third quarter profit was seen at 12 fils per share, while the profit for the nine-month period of the current year stood at AED 348.8 million (approximately 8 fils per share).
With these realized profits, the Dubai developer has cleared all losses for 2019 as well as for the first and second quarter of 2020 in addition to increasing its assets to AED6.2 billion from AED5.9 billion.
Also the Emirati developer increased the shareholders equity to AED 3 billion from 2.7 billion for Q3.
On the solid performance, Chairman Khalifa Hasan Al Hammadi said: "This is the first quarter completed under the leadership of the recently elected board of directors and we are proud to deliver these outstanding inaugural results."
"From day one our commitment has been to restore the prestige and credibility of Union Properties PJSC. In the span of three months, we have restructured the bulk of our debt, substantially reduced our operating costs and reinstated our credit reputation," he stated.
On its major achievement, Al Hammadi said: "It has been without a doubt the successful restructuration of our balance sheet notably by integrating an unclaimed Gross Floor Area (GFA) owned by our group."
"This exercise has been realized in close cooperation and total transparency with one of the top Middle East leading real estate valuation company, our statutory auditors and the regulatory authorities," he stated.
"Now that we have cleaned and restructured our balance-sheet and transformed Union Properties into one of the most solid and transparent companies listed on the Dubai Financial Market, all our focus will be on our operations and business development," he added.
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