Union Properties' Q2 2025 Growth and Major Sale
Union Properties PJSC reports robust growth in H1 2025 with a significant real estate sale agreement.
Summary
Union Properties PJSC has announced a notable 44% increase in gross profit for H1 2025, alongside a major AED 700 million real estate sale agreement.
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.
Source
Summary
Union Properties PJSC reported a 44% increase in gross profit for the first half of 2025, with total revenue rising to AED 316 million from AED 266 million in the same period in 2024. The company achieved AED 152.4 million in gross revenue for the second quarter, marking a 19% increase from the previous year, and a 77.84% rise in gross profit to AED 32.9 million. CEO Eng. Amer Khansaheb highlighted the company's progress in its transformation efforts and commitment to value creation. Despite increased overhead expenses due to early-stage real estate development and digital transformation investments, the company is focused on long-term growth. Union Properties plans to repay AED 150 million in bank debt, with AED 20 million already repaid and the remainder scheduled for Q3 2025. Additionally, the company signed a AED 700 million sale agreement for a real estate asset in Motor City.
