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UNITED DEVELOPMENT COMPANY ANNOUNCES 2019 FINANCIAL RESULTS
Net profit of QR 458 million and proposed dividend of 5%
Revenues of QR 1.76 billion, with an increase of 8% compared to 2018
• Al-Khater: “Financial results demonstrate the achievability of UDC’s strategy”
• Al-Khater: “UDC’s projects are strengthening the future of urban development in the State of Qatar”
• Al-Othman: “A myriad of achievements at The Pearl-Qatar and commencement of construction at Gewan Island as the cornerstone for our future developments”
• Al-Othman: “Two decades of excellence in the delivery of sustainable ventures and 2020 will be about achieving the goals”
United Development Company (UDC), a leading Qatari public shareholding company and the master developer of The Pearl-Qatar and Gewan Island, announced its financial results for the year 2019 achieving net profit of QR 458 million and revenues of QR 1.76 billion, with an increase of 8 % compared to 2018. The net profit attributable to equity shareholders stood at QR 423 million, and basic earnings per share amounted to QR 0.120.
Commenting on these results, UDC Chairman, H.E. Mr. Turki bin Mohammed Al-Khater said: “Despite a challenging real estate market in 2019, UDC achieved good financial results driven by the Company’s success in performing featured real estate development projects and attracting new investments into The Pearl-Qatar amid the completion of major milestones across the Island”.
H.E. Mr. Al-Khater added, “The proposed dividends for this year are in line with the volume of the real estate projects that the Company will develop and the cash outflow that will be spent on these projects during the year 2020. In this context, UDC’s investments in long-term projects, with an estimated amount of QR 5.5 billion and in accordance to the Company's five-year business plan 2019-2023, will ensure the Company’s sustainable growth and the creation of new opportunities and revenue sources over the long term”.
H.E. Mr. Al-Khater continued: “In line with this business plan, it is intended that capital contracts will be awarded for developing the projects with an amount of QR 3 billion and with cash outflow for those contracts amounting to an estimated QR 1.9 billion during 2020”.
H.E. Mr. Al-Khater further added: “These financial results demonstrate that UDC’s strategy of diversifying its revenues through the sale and leasing of real estate properties, while investing in the ongoing development of The Pearl-Qatar and long-term ventures, such as Gewan Island, is achieved”.
“These projects will further bolster the Island’s position as an attractive destination for families and investors alike, and will ensure the Company’s sustainable growth and the creation of new opportunities and revenues sources, therefore positioning UDC as a pioneer in shaping the future of urban development in the State of Qatar”.
For his part, UDC President and Chief Executive Officer and Member of The Board, Mr. Ibrahim Jassim Al-Othman, described 2019 as a year of focus and consolidation of efforts behind UDC’s core business; real-estate.
“In the past year, UDC placed a strong emphasis on expanding both its residential and retail offerings, and building on its community and customer-oriented initiatives across The Pearl-Qatar, while moving forward with the development of Gewan Island”, Mr. Al-Othman stated.
“These initiatives proved to be successful, as UDC maintained good revenues and enforced The Pearl-Qatar’s position as a safe and vibrant destination of choice for families, businesses and tourists”, Mr. Al-Othman said.
Mr. Al-Othman further indicated that the stability in occupancy rates at The Pearl-Qatar, enhanced recurring revenue generated from the leasing of residential and retail units, as well as the sale of residential units and plots in 2019.
Retail leasing witnessed an increase of 18% in leased retail space compared to 2018 and the opening of 65 new retail brands at The Pearl-Qatar, across the three main retail hubs in Porto Arabia, Medina Centrale and Qanat Quartier.
Residential occupancy further thrived with 178 new rental contracts signed for UDC properties, while UDC residential sales achieved a 115% increase for completed units and a 35% increase for residential units under construction in Al Mutahidah Towers, compared to 2018.
According to Mr. Al-Othman, “Impressive sales of plots in Giardino Village, Floresta Gardens and Qanat Quartier Marina in addition to Gewan Island in 2019, are yet another indication that UDC is considered a trusted developer of premium real estate investment products”.
It is worth mentioning that 2019, which marked the Company’s 20-year anniversary, featured a myriad of achievements.
In 2019, UDC signed agreements with the Ministry of Interior to secure The Pearl-Qatar’s maritime borders and to promote traffic safety across the island. Through such agreements, UDC aims to cement The Pearl-Qatar’s position as leading tourism and leisure destination that had attracted over 15 million vehicles in 2019.
In parallel, UDC moved forward with development projects across The Pearl-Qatar, with the construction commencement of United School International in Giardino Village, while, naming Orbital Education, the leading British educational group, as the operator of this School.
Giardino Village also featured the commencement of construction works for a gated compound, while Floresta Gardens launched construction works of 3 gated compounds, in addition to the completion of the sale of 10 tower plots in this precinct. This was in parallel to the ongoing construction works in Al Mutahidah Towers and The Pearl Commercial Showrooms.
In 2019, UDC signed an agreement to finance the development of Gewan Island and concurrently, marine works at the Island witnessed a significant progress and construction works of Gewan Island’s entrance bridge were successfully launched.
UDC was awarded two prestigious new awards in 2019; the Best Mixed-Use Development Award for The Pearl-Qatar and the Commercial High-Rise Development Award for UDC Tower, reflecting UDC’s premium property offerings.
UDC was also recognized at the 10th edition of Asia’s Best Employer Brand Awards, with the Best Employer Brand Award and the Award for Best HR Strategy in Line With Business. The awards reflect UDC’s success in aligning its HR policies with its business strategies and in adopting effective management practices that contribute to the growth of the Company and its employees.
Highlighting the Company’s plans and prospects for 2020, Mr. Al-Othman said: “The fundamental development phases achieved in 2019 will enable UDC to pursue its growth journey, and to capitalise on two decades of excellence in the delivery of sustainable ventures to residents, investors, businesses and shareholders alike. As such, 2020 is going to be all about achieving our goals with Gewan Island being the cornerstone for our future developments”.
UDC is a leading Qatari public shareholding company with a mission to identify and invest in long-term projects contributing to Qatar’s growth and providing good shareholder value.
Established in 1999, the Company was first listed on the Qatar Exchange in June of 2003. It has an authorized share capital of QR 3.5 billion and total assets of QR 18.2 billion at 31 December 2019.
UDC activities cover a multitude of vital investment sectors including real estate development, property management, infrastructure and utilities, maritime & hospitality related businesses.