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Earnings Report

Union Properties

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Union Properties PJSC (UPP) reported a strong Q1 2026 performance, delivering sharp revenue growth and improved profitability as the company continued executing its turnaround strategy and optimizing its income-generating assets.

Management highlighted that the company is now operating from a position of strength following balance sheet deleveraging and restored shareholder returns.

2. Financial Performance Snapshot

  • Revenue: AED 271.4M (+66% YoY)

  • Gross profit: AED 58.4M (+37% YoY)

  • Operating profit: AED 14.3M

  • Profit before tax: AED 13.1M

  • Net profit: AED 11.8M (+103% YoY)

  • Earnings per share (EPS): AED 0.0028

3. Operational Highlights & Key Metrics

  • Real estate segment revenue: AED 67.7M

  • Goods & services revenue: AED 188.4M

  • Contracting revenue: AED 13.4M

  • Development projects:

    • Continued progress on Takaya and Mirdif projects

    • Development properties increased to AED 551.0M

  • Balance sheet & liquidity:

    • Total assets: AED 4.80B

    • Total equity: AED 2.86B

    • Cash & equivalents: AED 284.1M

    • Investment properties: AED 2.18B

  • Debt reduction:

    • Bank loans reduced to AED 294.7M

    • Current portion of loans reduced significantly

4. Key Performance Drivers

  • Strong demand across the company’s real estate portfolio

  • Operational efficiencies and improved asset performance

  • Continued deleveraging and lower finance costs

  • Progress in development pipeline and monetization of assets

  • Diversified revenue contribution from goods, services, and contracting segments

5. Outlook & Forward Guidance

  • Continued focus on:

    • Scaling the development pipeline

    • Unlocking value across the portfolio

    • Driving sustainable and scalable growth

  • Management highlighted:

    • Ongoing optimization of income-generating assets

    • Focus on disciplined execution and operational efficiency

    • Positioning the company to benefit from Dubai’s evolving real estate market

6. 🧾 Investor Takeaway

Union Properties delivered a strong Q1 2026 with sharp revenue growth, improving profitability, and continued balance sheet strengthening, highlighting progress in its turnaround strategy and positioning the company for scalable long-term growth within Dubai’s real estate sector.