Revenue jumped 16% annually in the three-month period, driven by strong subsidiary performance

Dubai developer Union Properties swung to a profit in the first quarter as it continued to successfully put in place its turnaround strategy amid a strong rebound in the emirate’s property market.

The company’s net profit for the three month-period ending March reached Dh12.3 million ($3.3 million), from a loss of Dh12.5 million in the same period last year, Union Properties said in a filing on Wednesday to the Dubai Financial Market, where its shares are traded.

Revenue from contracts with customers in the January to March period rose by about 16 per cent annually to Dh122.1 million, as the group’s subsidiaries continued to perform strongly, the company said.

“We continue to make strong progress with the implementation of our turnaround strategy, building on the significant milestones achieved in the previous year,” said Amer Khansaheb, managing director of Union Properties.

“Looking ahead, we will continue to focus on driving efficiency across the group to support sustainable profitability improvements and cash flow generation.”

Union Properties launched a revised turnaround strategy in the first quarter of 2022 to cut costs, boost profitability and restore shareholder value, and said it was in negotiations with two of its major creditor banks to restructure loan facilities.

In December, the company unveiled a Dh1.6 billion development in Motor City, as part of its turnaround strategy.

The development, called Takaya, features 788 units across three towers, including 39 townhouses, five villas, 744 apartments and 55,000 square feet of retail space.

Chinese investors, pictured inspecting models of properties in Dubai during a 2018 trip, look set to return in large numbers this year. Photo: Driven Properties

The developer also reached an agreement with its creditors in October to restructure Dh595 million of debt that it said would help it recover and grow amid the UAE property market’s strong rebound.

The UAE property market has continued to recover from coronavirus-induced slowdown thanks to government initiatives, higher oil prices and other measures to support the economy.

Dubai’s total transactions value rose 80 per cent annually to Dh157 billion in the first quarter, according to official data.

Meanwhile, Abu Dhabi recorded real estate transactions worth Dh27.9 billion during the three-month period, the latest data from the Department of Municipalities and Transport showed.

Union Properties said it delivered significant efficiency improvements during the first quarter as part of its strategy to enhance profitability through fiscal prudence.

“We are now in a strong position to deliver long-term value creation for our shareholders by leveraging our deep expertise, reputation and highly sought-after land bank locations to drive growth and capitalise on the UAE’s thriving real estate market,” said Mr Khansaheb.