Cost cutting helps Union Properties reduce Q2 2020 net loss to $10.5m
A 24% slump in administrative and operational expenses in H1 2020 to $15.8m also pushed the net loss down from $33.2m
Dubai Financial Market-listed real estate developer Union Properties has reported a net loss of $10.5m (AED38.56m) in Q2 2020, marking a 68% decline from the net loss of $33.2m (AED121.86m) in the first quarter, as the developer puts in place cost cutting measures.
The news comes months after the company announced a major shake up to its board with the appointment of Khalifa Hasan Ali Saleh Al Hammadi as its new chairman and news board of directors.
Union Properties said in a stock market filing that in the past few months it has been engaged in “a series of transformational initiatives opening the way for a new chapter of growth and sustained development”.
The company, which launched the Motor City Hills project as part of its three-year ‘Strategic Blue-Print Plan’, earlier this month, said that in addition to the cost cutting efforts, a 24% slump in administrative and operational expenses in H1 2020 ending 30 June 2020 to $15.8m (AED58m) from $20.7m (AED76m) in the same period in 2019.
“The group’s new leadership has now a clear roadmap and we are committed to remain on the right track. We will continue to work towards the improvement of our operational efficiencies, operating cost management as well as our overall financial position,” said Khalifa Hasan Al Hammadi, chairman of Union Properties.
Al Hammadi added that the developer has been working with selective partners to improve and develop it’s “extensive land bank to create value assets with recurring cashflows in addition to identification of new business alternatives to suit the market demand and situation”.
Additionally, the developer has negotiated and finalised a comprehensive restructuring of the largest part of its outstanding debt with various financial institutions to improve its overall cashflow profile and liberate funds for growth.