Union Properties Cuts Debt, Boosts Q3 Profits
Union Properties showcases remarkable financial performance in Q3 2024, significantly reducing its legacy debts and boosting profits.
Summary
Union Properties reports a strong Q3 2024 with a profit of AED 53 million, a 56.5% reduction in legacy debts, and a 7% increase in revenue, indicating robust financial health.
Union Properties PJSC, a prominent player in the UAE's real estate sector, has reported impressive financial outcomes for the third quarter of 2024. The company announced a profit of AED 53 million, reflecting its strategic acumen and cost management efficiency. This achievement is a testament to Union Properties' commitment to long-term profitability and financial stability.
One of the most notable developments in this quarter is the substantial reduction of legacy bank debts by 56.5%, bringing the total down to AED 682 million. This significant debt reduction was achieved through strategic restructuring and diligent financial management, which have also led to a sharp decrease in financial costs from AED 85 million in 2023 to AED 22 million in 2024. Such financial prudence has positioned Union Properties favorably in the market, enhancing its liquidity and financial health.
Revenue from contractual agreements saw a commendable increase of 7%, rising from AED 364 million to AED 389 million compared to the same period last year. This growth is further bolstered by the performance of the company's subsidiaries, which collectively reported a 47% increase in gross profit, reaching AED 53 million in the first nine months of 2024.
Union Properties' current assets exceed its current liabilities by AED 326.2 million, indicating a strong liquidity position. This financial buffer underscores the company's capability to meet short-term obligations and demonstrates its robust financial health.
Given these positive developments, Union Properties is well-positioned for future growth. The company's strategic debt reduction and cost management efforts have not only improved its financial standing but also opened avenues for further investment and expansion. Investors looking for opportunities in the UAE's real estate market might consider Union Properties a viable option. Therefore, based on the current financial performance and future prospects, the suggestion is to buy Union Properties shares.
Source
Summary
Union Properties PJSC reported strong financial performance in the third quarter of 2024, achieving a profit of AED 53 million. The company reduced its legacy bank debts by 56.5% to AED 682 million. Over the first nine months of 2024, revenue from contractual agreements rose by 7% to AED 389 million compared to the same period in 2023. The company's subsidiaries contributed significantly to this growth, with a 47% increase in accumulated gross profit, reaching AED 53 million. Union Properties also decreased its financial costs from AED 85 million in 2023 to AED 22 million in 2024 through debt restructuring and repayment. By the end of the first nine months, the company's current assets exceeded current liabilities by AED 326.2 million, indicating strong liquidity and financial health.
