The Annual General Meeting (AGM) of Dubai-based developer Union Properties, which was held on Tuesday, has approved two special resolutions aimed at optimising the company’s financial structure and ensuring its long-term stability.
The first special resolution approved a 33.4% reduction in the company’s total issued share capital to extinguish the total accumulated losses of around $510 million, the company said in a disclosure with Dubai Financial Market this morning.
This will be executed by reducing the nominal value of each share to $0.18 per share and utilising all legal reserves to offset the losses. Additionally, the Board has been granted full authority to execute the capital reduction in accordance with the Federal Decree-Law No. 32 of 2021 on Commercial Companies (as amended) and Securities and Commodities Authority (SCA) regulations.
The second special resolution includes amendment of Article (6) of the Articles of Association of the Company to reflect the changes in the company’s capital.
The company also said that as part of its ongoing commitment to growth and innovation, it will soon launch two new projects soon, further reinforcing its position as a leading real estate developer in the UAE.
During the AGM, the shareholders were presented with a comprehensive overview of the company’s financial performance and strategic initiatives for 2024. It also underscored Union Properties’ commitment to sustainable growth, operational efficiency, and enhancing shareholder value.
Union Properties Chairman Mohamed Fardan Ali AlFardan provided insights into the company’s financial performance for the past fiscal year and highlighted the significant measures undertaken to strengthen the Company’s financial position, resulting in an operating profit of $44.05 million, marking a robust annual growth rate of 59%.
The company also reported a total comprehensive income of $107.54 million. Additionally, revenue generated from customer contracts increased to $143.94 million, up from $138.31 million in 2023, underscoring the sustained operational performance and strategic growth of the company and its subsidiaries.
Achievements
Union Properties also registered remarkable achievements in debt restructuring, with total repayments amounting to $196.84 million in 2024, while finance costs were substantially reduced from $31.04 million in 2023 to $8.63 million, further improving its financial standing.
Union Properties CEO Amer Khansaheb said that 2024 marked a transformative chapter in the company’s history, which has successfully navigated a rapidly evolving market landscape, implementing bold strategies that have strengthened the financial foundation and positioned it for long-term, sustainable growth.
“Our commitment to operational excellence, prudent financial management, and value creation remains unwavering. As we look ahead, we will continue to harness innovation, drive new projects, and cultivate strategic partnerships to fuel our next phase of expansion and further strengthen shareholder confidence,” he added.
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