Union Properties PJSC (“Union Properties” or “the Firm”) (DFM: UPP) as we speak introduced its monetary outcomes for the second quarter of 2025, showcasing continued momentum in its transformation journey and stable progress throughout key operational and monetary indicators.
The Firm reported AED 152.4 million in gross income for Q2 2025, representing a 19% year-on-year enhance from AED 128 million in Q2 2024. Gross revenue surged to AED 32.9 million, up 77.84% in comparison with the identical interval final yr, reflecting improved operational effectivity and margin restoration.
For the first half of 2025, Union Properties recorded AED 316 million in whole income, up from AED 266 million in H1 2024, and AED 75.6 million in gross revenue – representing a 44% enhance over the AED 52.6 million reported in the identical interval final yr.
Eng. Amer Khansaheb, Chief Govt Officer and Board Member of Union Properties PJSC, commented:
“We’re happy to report one other quarter of significant progress in our transformation. The primary-half outcomes mirror the energy of our working fundamentals and our ongoing dedication to long-term worth creation. Whereas we proceed to spend money on scaling up our improvement enterprise and digitizing our operations, the monetary influence of those strategic steps will unfold over the approaching quarters.”
The Firm famous that its overhead bills elevated in H1 2025, primarily on account of two components:
- The early-stage nature of the true property improvement cycle, the place prices are incurred upfront whereas undertaking revenues are anticipated to materialize progressively over the following three years.
- A big funding in digital transformation, addressing legacy know-how gaps and modernizing programs throughout the Group to assist future progress.
As a part of its ongoing debt administration plan, Union Properties introduced in Q2 its intention to repay AED 150 million in financial institution debt. Nevertheless, solely AED 20 million was repaid previous to quarter-end, with the remaining AED 130 million scheduled for reimbursement in Q3 2025 because of the timing of money receipts after the quarter’s shut.
A key strategic spotlight of Q2 was the signing of a conditional sale settlement price AED 700 million for a significant actual property asset in Motor Metropolis. This landmark transaction is predicted to be financially acknowledged in This fall 2025 and varieties a cornerstone of the Firm’s technique to unlock worth from its land financial institution and strengthen its stability sheet.
Whereas web revenue for Q2 2025 stood at AED 8.74 million, decrease than the identical interval final yr, the decline is attributed to front-loaded investments in improvement actions and infrastructure upgrades. Notably, monetary prices decreased to AED 14.28 million within the first half of 2025 from AED 15 million in H1 2024.
Union Properties stays centered on executing its AED 5 billion+ improvement pipeline and delivering sustained worth to shareholders by prudent capital allocation, income diversification, and operational transformation.