Union Properties Delivers Strong Q1 2025 Results, Revenue Grows 18.2% and Pays Down AED179 million of Legacy Debt
This revenue growth is expected to continue, supported by strategic initiatives and project launches, with significant increases anticipated each quarter. This solid performance underscores the Company's continued focus on its core operations and the positive contributions of its high-performing subsidiaries across the UAE's Real Estate sector. Gross profit increased to AED42.8 million, representing a 25.3% increase compared to AED34million in Q1 2024, reflecting a strong gross profit growth fuelled by enhanced operational efficiency and sustained demand.
Furthermore, Union Properties continues to advance its financial restructuring strategy, targeting enhanced flexibility and long-term sustainability. In Q1 2025, the Company reduced its bank debt by AED179 million and plans to pay an additional AED159 million in Q2 2025. These repayments build on the AED723 million successfully settled in 2024, reinforcing the Company's unwavering commitment to prudent and disciplined financial management and long-term sustainability.
Eng. Amer Khansaheb, Chief Executive Officer and Board Member at Union Properties PJSC, said: 'Union Properties has entered 2025 with strong momentum, underpinned by a robust first quarter that reinforces the strength of our business model and the trust of our stakeholders. Our solid growth in revenue and profitability—alongside strategic debt management—highlights the effectiveness of our long-term strategic roadmap. By actively advancing new project launches and realising value through strategic asset optimisation, we are creating a dynamic platform for sustainable growth. As we look ahead, Union Properties is exceptionally well-positioned to seize emerging opportunities in the UAE's thriving Real Estate sector and play a key role in supporting Dubai's ambition to become a premier global investment destination.'
Union Properties is strategically focused on strengthening its financial position. The Company continues to demonstrate significant progress by actively deleveraging its legacy debt, launching new development projects, and achieving consistent revenue growth, reflecting a balanced and forward-looking strategy. The increase in the admin expenses is reflected in the marketing and sales activation for new developments, accelerating growth and enhancing visibility for upcoming projects. As part of this approach, the Company is actively exploring opportunities to increase liquidity and maximise asset utilisation, reinforcing its ability to stay financially agile and resilient in a competitive market.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
a day ago
- Khaleej Times
UAE Lottery: 7 residents bag Dh100,000 each; winning numbers revealed
The winning numbers for the UAE Lottery jackpot were announced on Sunday, August 9, and they are: 19, 4, 1, 14, 9, 10 in the Days set, and 8 in the Months set. To win Dh100 million, the numbers in the Days section need not be in the exact sequence. However, the number in the month section, which is 8 this week, must be matched correctly. After the lottery numbers were picked, the system chose the seven Lucky Chance IDs, which give 'guaranteed' prizes of Dh100,000 each. The winning IDs were: CK6194776 AI0776416 DD8036686 CP6651315 CW7378863 BH3232556 АТ1838014 Each entry for a chance at the jackpot costs Dh50. For each ticket bought, the system generates a corresponding 'Lucky Chance ID'. According to the company's website, the odds of winning the jackpot is approximately 1 in 8.8 million. Depending on the numbers they match, participants can win Dh100 million, Dh1 million, Dh100,000, Dh1,000 or Dh100. Participants can either select their lottery numbers or use the 'Easy Pick' feature that does the job through a random number generator. So far, the Dh100 million jackpot has been elusive, but Bishop Woosley, director of Lottery Operations at The Game, which operates UAE Lottery, had said in a previous interview with Khaleej Times that it was only a matter of time before someone wins it. More recently, the UAE lottery launched several scratch card games, which gave players a chance to win up to Dh1 million. Rates for these cards start from Dh5, which offers the opportunity to win up to Dh50,000. The draw's Dh10 cards have a top prize of Dh100,000, while the Dh20 ones have Dh300,000. Players can win Dh1 million with cards priced at Dh50.
Zawya
a day ago
- Zawya
Salama announces robust H1 2025 performance driven by profitability and equity growth
Improved equity position at AED 351.84 million in first half of 2025, rising 5.2% from December 2024 Dubai – Salama (DFM: "SALAMA"), a leading regional Takaful provider, today announced its interim consolidated financial results for the six-month period ended June 30, 2025. The Company reported a positive profit in the first six months of 2025 and continued strengthening of its balance sheet, driven by a significant rebound in profitability during the second quarter of 2025. Net profit for the period stands at AED 8.25 million, demonstrating continued profitability and positive operational momentum, driven by AED 7.86 million profit in Q2 2025, a substantial increase from AED 2.95 million in Q2 2024. Takaful revenue was recorded at AED 515.36 million in the first six months of 2025, compared to AED 528.59 million in the same period in 2024. Total Equity increased by 5.2 percent to AED 351.84 million as of June 30, 2025, from AED 334.38 million as of December 31, 2024, driven by profit generation and a reduction in accumulated losses to AED 440.68 million by June 30, 2025 from AED 443.86 million by the end of 2024. Bank balances and cash significantly improved to AED 214.44 million from AED 148.77 million at year-end 2024, reflecting robust cash management. Takaful service expenses saw a significant reduction, aligning with the Company's commitment to operational efficiency. Total comprehensive income further improved to AED 19.57 million, compared to a loss of AED 19.7 million in the same period in 2024, reflecting improving economic conditions in key markets and positive foreign currency adjustments at the subsidiary level. H.E. Fahad AlQassim, Chairman of Salama, stated: 'Salama has demonstrated improved equity, enhanced liquidity and better solvency in the first six months of 2025, underscored by significant quarter-on-quarter increase in performance. As we continue to strengthen our balance sheet, we remain focused on our ongoing efforts in streamlining Salama's next phase of growth. At Salama our initiatives are centred on building a more resilient foundation that enhances development of the economy, empowers our customers and delivers meaningful impact to society, aligning with the UAE's progressive vision.' Mohamed Ali Bouabane, Group Chief Executive Officer at Salama, said: 'We are pleased to report a strong performance in the second quarter of 2025 for Salama, which has significantly contributed to our overall profitability for the first half of the year. Our strategic focus on operational efficiency and prudent financial management is yielding positive results, underpinned by the substantial increase in our cash reserves and continue to strengthen of our equity base. We remain committed to delivering excellence in customer-centric products, innovating our Takaful offerings, and upholding our promise to policyholders and shareholders. The positive momentum positions us well for the remainder of the year as we continue to navigate the market with agility, disciplined underwriting, digital innovation, and strategic foresight to further solidify Salama's position as a regional Takaful leader.' As one of the world's largest and longest-established Takaful providers, Salama is committed to increasing access to Shariah-compliant insurance solutions in the region to create enduring value for customers. Recently, the Company collaborated with to increase life insurance penetration in the UAE over digital channels. Salama's long-term issuer credit and insurer financial strength rating was affirmed at 'BBB-' by S&P Global Ratings with a Developing outlook. -Ends- Press Contact Salama Karen S. Randhawa, Head of Marketing and Communications About Salama Islamic Arab Insurance Company Salama Islamic Arab Insurance Company (Salama) is one of the world's largest and longest-established Shariah-compliant Takaful solutions providers listed on the Dubai Financial Market, with paid-up capital of AED 939 million. Since its incorporation in 1979, Salama has been a pioneer in the Takaful industry, having won many industry awards and accolades. Salama's stability and success can be attributed to its customer-centric approach that keeps its customers and partners at the heart of the business, while staying committed to its Takaful principles. The company is recognised for providing the most competitive and diverse range of family, motor, general and health Takaful solutions that meet the ever-changing demand of its individual and corporate customers in the UAE and, through its extensive network of subsidiaries and associates, in Egypt and Algeria. As the preferred Takaful provider for its partners and customers, Salama remains committed to shaping tomorrows, together.
Zawya
2 days ago
- Zawya
Nigeria: Mounting deficits raise concerns over bank takeover as Ikeja Electric reports $16mln pretax loss
Efforts by Nigerian banks to take over Sahara Group's power assets may be complicated by the deepening financial woes of Ikeja Electricity Distribution Company (Ikeja DisCo), which posted a pretax loss of N25.2 billion for the full year ended December 31, 2023. The company's latest financials revealed worsening fundamentals that raised red flags for potential acquirers. Despite recording a 21.6 percent increase in revenue to N207.34 billion—up from N170.4 billion in 2022—soaring costs and operating inefficiencies continued to erode profitability. Distribution and administrative expenses jumped 25.7 percent to N55.7 billion, while net finance costs surged by 70 percent to N10.34 billion in 2023. A tax credit of N21 billion helped cushion the blow, reducing after-tax loss to N4.1 billion from a previous profit of N33.96 billion in 2022. Nonetheless, accumulated deficits rose to a record N177.05 billion from N172.88 billion a year earlier, highlighting the company's persistent losses. Among the most pressing concerns is a tariff shortfall of N83.64 billion and trade payables totaling N115 billion. The company's current liabilities of N183.46 billion far exceed its cash and bank balance of N23.01 billion, resulting in a negative working capital of over N160 billion. Employee benefit expenses stood at N12.47 billion, while staff welfare and contract labor costs added N121.89 million and N1.64 billion, respectively—bringing total personnel-related spending to N14.52 billion. Repairs and maintenance expenses were N2.4 billion. Ikeja DisCo's biggest expense remains energy purchases, with the company spending N215.31 billion on electricity sourced from the Nigerian Bulk Electricity Trading (NBET) Plc. This accounts for the lion's share of the company's rising cost of sales. Total loans and borrowings stood at N39.2 billion, while total financial liabilities—including trade and other payables (excluding statutory deductions)—amounted to N173.94 billion. Analysts say the company's prolonged losses and weak balance sheet make it a less attractive asset for lenders aiming to recover outstanding debts. Ikeja DisCo is a beneficiary of the Central Bank of Nigeria's (CBN) Operating Expenditures (OPEX) loan, a special facility designed to support power distribution companies in meeting their minimum market remittance obligations and operational expenses. The 10-year loan was extended at a subsidised interest rate of five percent annually up to February 28, 2023, and nine percent thereafter. In addition, the company secured a N2.9 billion loan from Sahara Power Group Limited on May 1, 2022. This 12-month facility, offered at an 18 percent interest rate, was used to finance technical upgrades. By the end of 2023, the full amount had been drawn, up from N2.4 billion in 2022. Another loan agreement worth N3 billion was executed in April 2023, also at 18 per cent interest over 24 months, with N1.6 billion disbursed by year-end. Ikeja DisCo's troubling financial position comes amid an ongoing legal battle between Sahara Group and a consortium of Nigerian banks seeking to recover loans said to total N1.1 trillion. The banks involved include Access Bank, First Bank, Zenith Bank, UBA, Union Bank, FCMB, Fidelity Bank, Keystone Bank, and Sterling Bank. Through their appointed trustee, First Trustees Limited, and facility agent, FBNQuest Merchant Bank, the banks appointed Kunle Ogunba (SAN) as receiver over Sahara's assets on July 19, 2025. In response, Sahara Group swiftly filed lawsuits to halt the receivership process. On August 5, 2025, the Federal High Court in Lagos, presided over by Justice Akintayo Aluko, issued an injunction restraining the banks and the appointed receiver from taking adverse actions against the power companies. The ruling protects Egbin Power Plc, Ikeja Electric Plc, and First Independent Power Limited (FIPL) from enforcement actions related to the disputed debt. Babatunde Osadare, Chief Legal and Regulatory Officer of Ikeja Electric, said the ruling bars the receiver from accelerating the loan, interfering in business operations, enforcing share security, or acting unilaterally on financial documents. Ikeja Electric Plc operates within a franchise covering six business units: Ikeja, Oshodi, Shomolu, Ikorodu, Akowonjo, and Abule-Egba. The company acquired these assets in 2013 during the federal government's power sector privatization program. The assets were sold to the New Electricity Distribution Company (NEDC) consortium—comprising Sahara Group and Korean Electric Power Corporation (KEPCO), which serves as the technical partner. Ownership was formally transferred on November 1, 2013. Kepco Energy Resources Limited holds a 70 percent stake in Egbin Power Plc; NG Power HPS Limited, a Sahara subsidiary, owns 70 percent of First Independent Power Limited while New Electricity Distribution Company Limited controls 70 percent of Ikeja Electric. Analysts believe that with mounting liabilities, ballooning deficits, and a court-ordered injunction freezing lender actions, the future of Sahara Group's energy holdings—including IkejaDisCo—remains mired in uncertainty. For banks, the combination of weak financial performance and legal obstacles poses significant challenges in their pursuit of loan recovery. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
