UAE .. Al -Ittihad shares increases 0.93% after reducing the accumulated debt

Al -Ittihad Real Estate Company, listed in the Dubai Securities Market, rose by 0.93% at the beginning of the market transactions to circulate at the price of 0.43 dirhams per share, after the company announced the reduction of its accumulated debts.
5.68 million shares of Al -Ittihad Real Estate Company were traded at that time, with a value of trading 2.48 million dirhams.
The highest price for the share at that time was at 0.44 dirhams per share, while the share price was at 0.43 dirhams per share.
Al -Ittihad Real Estate Company’s shares in the Dubai Financial Market witnessed an increase after the company announced the reduction of its accumulated debts to 575 million dirhams by December 2024, compared to 1.47 billion dirhams in 2022.
The company reported that it was able to obtain improved interest rates, which led to a decrease in the interest rate by 0.85 points, and confirmed its endeavor to reduce debt worth 150 million dirhams by the end of the first quarter of 2025.
It also announced the securing of an additional financing line from banks worth 150 million dirhams, dedicated to investing in new opportunities that intend to implement during the next eighteen months, with expectations that these investments will contribute to achieving a repeated annual income estimated at 40 million dirhams, which will enhance the company’s revenues.
The company pointed out that the debt restructuring strategy resulted in a significant reduction in financing costs from 114 million dirhams in 2023 to 32 million dirhams in 2024, which achieved financial savings of 82 million dirhams. This success reflected positively on improving profitability and cash liquidity.
On the other hand, the company was able to achieve revenues of 1.3 billion dirhams to sell land, which it used to pay part of its debts, in addition to financing the first stages of ambitious real estate projects.
It is worth noting that the Real Estate Union announced in 2023 its plan for financial recovery, which aims to reduce accumulated losses from 2901 million dirhams to 2133 million dirhams by 2025, or from 67.63% to 49.72% of the capital of 4289.5 million dirhams.
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