Union Properties’ gross profit grows 44% in H1 2025

Union Properties on Thursday announced that gross profit in the first six months of 2025 rose 44 per cent year on year to Dh75.6 million, driven by solid progress across key operational and financial indicators.

The company reported Dh152.4 million in gross revenue for Q2 2025, representing a 19 per cent year-on-year increase from Dh128 million in Q2 2024. Gross profit surged to Dh32.9 million, up 77.84 per cent compared to the same period last year, reflecting improved operational efficiency and margin recovery.

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For the first half of 2025, Union Properties recorded Dh316 million in total revenue, up from Dh266 million in H1 2024.

Eng. Amer Khansaheb, chief executive officer and board member of Union Properties PJSC, commented: “We are pleased to report another quarter of meaningful progress in our transformation. The first-half results reflect the strength of our operating fundamentals and our ongoing commitment to long-term value creation. While we continue to invest in scaling up our development business and digitising our operations, the financial impact of these strategic steps will unfold over the coming quarters.”

The company’s overhead expenses increased in H1 2025, primarily due to two factors: The early-stage nature of the real estate development cycle, where costs are incurred upfront while project revenues are expected to materialise progressively over the next three years; and a significant investment in digital transformation, addressing legacy technology gaps and modernizing systems across the Group to support future growth.

As part of its ongoing debt management plan, Union Properties announced in Q2 its intention to repay Dh150 million in bank debt. However, only Dh20 million was repaid prior to quarter-end, with the remaining Dh130 million scheduled for repayment in Q3 2025 due to the timing of cash receipts after the quarter’s close.

A key strategic highlight of Q2 was the signing of a conditional sale agreement worth Dh700 million for a major real estate asset in Motor City. This landmark transaction is expected to be financially recognised in Q4 2025 and forms a cornerstone of the company’s strategy to unlock value from its land bank and strengthen its balance sheet.

While net profit for Q2 2025 stood at Dh8.74 million, lower than the same period last year, the decline is attributed to front-loaded investments in development activities and infrastructure upgrades. Notably, financial costs decreased to Dh14.28 million in the first half of 2025 from Dh15 million in H1 2024.

Union Properties said it remains focused on executing its Dh5 billion+ development pipeline and delivering sustained value to shareholders through prudent capital allocation, revenue diversification, and operational transformation.

Somshankar Bandyopadhyay

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somshankar@khaleejtimes.com

Somshankar Bandyopadhyay is a News Editor with close to three decades of experience. Currently, he manages the business section, ensuring that the top economic and business news of the day reaches its readers.