Page 97 - UNION PROPERTIES GENERAL REPORT - April 2024_Neat

During the three-month period that ended on 31 March 2024, the company successfully
closed AED 816 million in plot sales and used the proceeds to repay AED 290 million to
its lenders.

The DFM-listed company is set to repay an additional AED 250 million in Q2-24, marking
a significant milestone in its debt restructuring plan agreed with local banks.

The restructuring aims to lower the financing costs and deleverage Union Properties’
balance sheet for improved profitability and enhanced cash flow generation.

In line with its commitment to reducing the accumulated losses, the company and its
subsidiaries boosted efforts to restructure the outstanding debt and reduce the finance
cost.

Amer Khansaheb, Managing Director of Union Properties, commented: “We have
witnessed significant improvement on the demand for company-owned plots in Motor
City, leading to increased cash flow during Q1-24.”

“With a bolstered balance sheet and improved free cash flows, we are now in a strong
position to leverage our deep expertise, reputation, and highly sought-after land bank
locations to pursue strategic growth opportunities and expand our market presence with
confidence and agility,” Khansaheb added.

He underlined: “This milestone marks a significant achievement after the successful
conclusion of our debt restructuring, laying a sturdy foundation for propelling growth and
enriching shareholder value.”

The official stated: “The strong performance and outlook for the UAE’s Real Estate market
provides significant opportunities for Union Properties, including the potential for new Real
Estate developments in the near future.”

In Q4-23, Union Properties incurred accumulated losses totalling AED 2.10 billion, which
represented 49.08% of the capital.

Last year, the DFM-listed firm registered net profits valued at AED 811 million.

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Q1-24/