Union Properties

1. Company Overview & Earnings Context

Union Properties PJSC, one of Dubai's leading real estate developers, reported stronger financial results for the first half of 2026, supported by robust revenue growth across its businesses. The company benefited from higher property development activity, improved finance income and continued progress on its flagship Takaya and Mirdif developments.

Despite higher operating expenses during the period, Union Properties delivered higher profitability while continuing to strengthen its investment property portfolio and maintain a solid balance sheet.

2. Financial Performance Snapshot

• Revenue: AED 529.3 Million (+67.7% YoY)

• Gross Profit: AED 107.0 Million (+41.4% YoY)

• Operating Profit: AED 25.0 Million (-7.6% YoY)

• Profit Before Tax: AED 20.6 Million (+24.5% YoY)

• Net Profit: AED 18.4 Million (+26.2% YoY)

• Basic & Diluted EPS: AED 0.0043

Compared with H1 2025:

• Revenue increased from AED 315.7 million to AED 529.3 million.

• Gross profit increased from AED 75.7 million to AED 107.0 million.

• Operating profit declined from AED 27.0 million to AED 25.0 million.

• Profit before tax increased from AED 16.5 million to AED 20.6 million.

• Net profit increased from AED 14.6 million to AED 18.4 million.

3. Operational Highlights & Key Metrics

• Total Assets: AED 4.59 Billion

• Total Equity: AED 3.54 Billion

• Total Liabilities: AED 1.05 Billion

• Investment Properties: AED 2.18 Billion

• Development Properties: AED 604.5 Million

• Cash & Cash Equivalents: AED 438.1 Million

• Trade & Other Receivables: AED 626.1 Million

• Contract Assets: AED 80.6 Million

• Bank Borrowings: AED 278.7 Million

• Investment Property Additions: AED 178.1 Million

• Capital Expenditure on Property, Plant & Equipment: AED 55.4 Million

• Dividend Paid: AED 128.6 Million

4. Key Performance Drivers

Union Properties' strong revenue growth was primarily driven by increased activity across its real estate development and related businesses, resulting in a significant improvement in gross profit. Operating profit declined slightly as administrative and general expenses increased during the period and other operating income moderated. However, improved finance income together with lower finance costs helped lift profit before tax and net profit. The company also continued investing in its Takaya and Mirdif developments while expanding its investment property portfolio through the acquisition of an additional building.

5. Outlook & Forward Guidance

Management did not provide formal financial guidance for the remainder of 2026. The company stated that revenue from ongoing development projects will continue to be recognised as construction obligations are fulfilled over the coming years. Union Properties also continues to invest in its development pipeline while maintaining a strong asset base and capital position.

6. Investor Takeaway

Union Properties delivered a solid first-half performance, with revenue and net profit both recording healthy double-digit growth. While higher operating expenses weighed on operating profit, improved financing performance and continued development activity supported overall earnings. The company's sizeable asset base, growing investment portfolio and ongoing real estate projects position it well as it executes its long-term development strategy.