Union Properties PJSC

The letter, dated October 11, 2024, from Khaled Chaaban, Board Secretary of Union Properties PJSC, addresses an inquiry regarding the discrepancy between the estimated project value of AED 2 billion mentioned in a press release and the project cost of AED 1.15 billion stated in a disclosure. The letter clarifies that the disclosed project cost includes only construction-related expenses, excluding additional costs such as marketing, sales, management, overheads, and financing. The total project value reflects the entire project, and the company's current strategy is to retain ownership of some units to increase annual recurring income, rather than selling the entire project. Therefore, the project's value should not be calculated simply by adding construction costs and estimated profits.

Union Properties has launched the 'Takaya' project in Dubai Motor City, aiming to enhance urban living in Dubai's real estate market. The project, unveiled at the Ritz Carlton DIFC, includes three residential towers with 744 apartments, penthouses, townhouses, villas, and commercial spaces. It features a 500-meter retail boulevard and overlooks the Dubai Autodrome. Takaya offers a range of unit sizes and competitive pricing, along with spacious living areas and a post-handover payment plan. The project is designed to attract investors and meet diverse customer needs, contributing to the development of Dubai's real estate sector.

Date: 25/09/2024 Mr. Hamed Ahmed Ali, Chief Executive Officer, Dubai Financial Market, Dubai, United Arab Emirates. Subject: Disclosure of Union Properties PJSC Dear Mr. Ali, We confirm the validity of the media interview conducted by Al Khaleej Newspaper with Eng. Amer Khansaheb, Chief Executive Officer and Board Member of Union Properties PJSC. The interview was published today, Wednesday, 25th of September 2024, in Al Khaleej Newspaper and its website. The interview is titled: "Union Properties to Al Khaleej: 10 million feet of land bank, and projects worth 6 billion soon." Below is the link to the media interview: [Link] Sincerely, Khaled Chaaban, Board Secretary, Union Properties PJSC.

Union Properties PJSC, a prominent real estate developer in Dubai, is emphasizing its commitment to Emiratisation by participating in the "Ru’ya" Careers UAE 2024 event from September 24 to 26 at the Dubai World Trade Centre. The company aims to engage with Emirati talent, including interns and fresh graduates, as part of its alignment with the UAE Centennial Plan 2071. Currently, 25% of Union Properties' senior management roles are held by UAE nationals. CEO Eng. Amer Khansaheb highlighted the company's dedication to offering valuable opportunities for Emirati professionals and supporting the growth of Dubai's real estate market.

Union Properties PJSC reported a net profit of AED 18.3 million for Q2 2024, demonstrating strong performance driven by effective operational strategies and cost management. The company's revenue from contractual engagements increased by 7.6% to AED 128 million compared to Q2 2023. Subsidiaries contributed significantly, with a gross profit of AED 52.6 million in H1 2024, a 15% increase from the same period in 2023. Financial costs were reduced from AED 56 million in 2023 to AED 15 million in 2024 due to debt restructuring. The company achieved an accumulated profit of AED 34.8 million in H1 2024, doubling from AED 17.7 million in H1 2023. Additionally, a subsidiary is considering acquiring an outsourcing company to enhance asset value and profitability.