May 26, 2022

Dubai Week

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Union Properties records a loss of 12.5 million dirhams due to financial costs

Union Properties records a loss of 12.5 million dirhams due to financial costs

Dubai: “Gulf”
Union Properties reported a net loss of 12.5 million dirhams in the first quarter of this year; This is due to the financial costs of 17 million dirhams associated with hereditary debt, and the new board is continuing to work on restructuring. The company made a one-time profit of 6.9 million dirhams from the sale of one property at the end of the first quarter of 2021.
Revenues
Revenue from customer deals in the first quarter of 2022 was 105.7 million dirhams, supported by an increase of 7.6% compared to the same period last year, followed by a continued recovery and significant improvement in the real estate sector in Dubai. Performance of group subsidiaries.
Dubai Autotrom’s revenue grew by 38% year-on-year and profits by 61.2% in the first quarter, thanks to the opening of the Motorsport Business Park 2 warehouse complex, increased corporate and group customer base and major international motorsports events. First quarter.
Earnings before interest and taxes (EBIT) were in the same range; Although AED once made a profit of 6.9 million from the sale of assets in 2021, AED reached 5 million AED in 2021 over the same period, despite an additional legal costs of AED 2.2 million related to cases from previous periods. The company’s management focuses on cutting costs, restructuring its operations and improving all business performance, reducing administrative and general costs by 21.2% year-on-year in the first quarter.
The integration of asset management, cold storage management and storage operations is a key factor in reducing costs and increasing operating efficiency.
To improve
Amir Khan Sahib, Board Member and Managing Director of Union Properties, said: “Union Properties has seen an improvement in performance in the first quarter of 2022, offsetting increased revenue and costs across all of the company’s businesses. We are starting to see positive results from the strategic recovery plan and we hope to see more positive improvements in the coming months. The company will continue to focus on meeting the challenges it faces as a result of previous management actions such as debt restructuring and increasing shareholder confidence.

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