Union Properties PJSC, a prominent name in the United Arab Emirates' real estate sector, has recently reported a substantial 44% growth in gross profit for the first half of 2025. This impressive performance reflects the company's strategic focus on operational efficiency and margin recovery.

In Q2 2025, Union Properties recorded AED 152.4 million in gross revenue, marking a 19% increase compared to the same period last year. The company's gross profit surged to AED 32.9 million, a 77.84% rise from Q2 2024. These figures underscore the company's successful transformation journey and its commitment to long-term value creation, as highlighted by CEO Eng. Amer Khansaheb.

However, the company also reported increased overhead expenses, primarily due to the early-stage nature of its real estate development cycle and significant investments in digital transformation. These investments are crucial for addressing legacy technology gaps and modernizing systems to support future growth.

A key highlight of Q2 was the signing of a conditional sale agreement worth AED 700 million for a major real estate asset in Motor City. This transaction is expected to significantly boost Union Properties' financial standing and further solidify its market position.

Despite the positive financial results, Union Properties is actively managing its debt. The company announced its intention to repay AED 150 million in bank debt, with AED 20 million already repaid and the remaining AED 130 million scheduled for Q3 2025.

Given the company's robust growth, strategic investments, and debt management efforts, Union Properties is well-positioned for future success. Investors might consider holding their positions in the company as it continues to demonstrate strong potential for growth and value creation.