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United Development Company Announces 2020 Financial Results
Net profit of QR 265 million, revenues of QR 1.176 billion and proposed dividends of 5%
• Al-Khater: “UDC was able to maintain development activities at The Pearl-Qatar and Gewan Island throughout the year”
• Al-Othman: “2020 was an exceptional year which demonstrated UDC’s ability to maintain development activities without significant change in the development completion dates”
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 2020 achieving net profit of QR 265 million and revenues of QR 1.176 billion. The net profit attributable to equity shareholders stood at QR 226 million, and basic earnings per share amounted to QR 0.064 with proposed dividends of 5%. Commenting on these results, UDC Chairman, H.E. Mr. Turki bin Mohammed Al-Khater said: “Despite the challenges that businesses have faced in 2020 as a result of the coronavirus pandemic, UDC was able to maintain development activities throughout the year where we succeeded in completing the planned development phases at The Pearl-Qatar and Gewan Island.”
H.E. Mr. Al-Khater further continued: “In line with its business plan to develop promising projects, UDC boosted development activities in Gewan Island, with the awarding of contracts worth QR 1.5 billion for the Island’s mixed-use buildings, landscape and infrastructure works, in addition to signing technical services and management and operation agreements with Corinthia Hotels, for ‘Corinthia Gewan Island Qatar’ hotel, and its connected golf course and beach club in Gewan Island, in addition to the new Yacht Club at The Pearl-Qatar. All these investments will ensure UDC’s sustainable growth and the creation of new opportunities and revenue sources over the long term.”
“Thus, the proposed dividends for the year 2020 are in line with value of the real-estate projects that the company is developing and cash out flow that will be spent on these projects during the year 2021 in accordance to the Company’s five-year business plan.”
Concluding his statement, H.E. Mr. Al-Khater said: “We hope that the coming period will bring an increased demand for properties as a result of the new ministerial decision that allows foreign ownership of property and the privileges it carries to residents and investors, which will ensure the sustainable growth of the real estate sector, including our company.”
For his part, UDC President and Chief Executive Officer and Member of The Board, Mr. Ibrahim Jassim Al-Othman, described 2020 as an exceptional year, which demonstrated UDC’s ability to adhere to its business plan and maintain development activities according to the specified timeline without significant change in the development completion dates, which is an achievement in its own right.
Mr. Al-Othman added: “The stability in occupancy rates at The Pearl-Qatar contributed to achieving recurring revenues from residential and retail leasing, in addition to the sale of residential units and plots in 2020.”
He further pointed out that UDC achieved major strides in the development of Gewan Island, with the completion of major marine works simultaneously with ongoing infrastructure works. UDC also completed main foundation works and started installing support pylons of Gewan Island’s main entrance bridge. Substantial progress was also made in Crystal Residence which witnessed the completion of main stages within the common basement, with some of the buildings already reaching the third floor of construction.
As for development projects on The Pearl-Qatar, Mr. Al-Othman said: “UDC has accelerated development works all over The Pearl-Qatar, and as such Al Mutahidah Towers is now substantially completed, with apartments and retail units scheduled to be handed over to residents and retail tenants by beginning of Q2 2021.”
In the past year, UDC has equally made remarkable progress in developing Floresta Gardens’ infrastructure and is also on schedule with the development of its three gated villa compounds, and Floresta Galleria mall where substructure works are already done.
Construction works of the UDC-developed gated villa compound and apartment building in Giardino Village have also proceeded as planned. Concurrently, Giardino Mall’s structural works and the leasing of the mall’s retail and commercial spaces have been finalized. Construction of United School International is also progressing, with the main building skeleton completed and internal and external finishing works being executed with speed and efficiency, enabling UDC to handover the school to the operator.
Mr. Al-Othman further indicated that retail leasing witnessed an increase of 125% in new leased retail space in 2020 compared to 2019 and the opening of 28 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 140 new rental contracts signed for UDC properties, while UDC has succeeded in achieving returns from the sale of residential properties with the sale of 31 completed units at The Pearl-Qatar and the sale of 95% of residential units under construction in Al Mutahidah Towers, in addition to the sale of all completed villas and low-rise building plots in Giardino Village as well as all residential plots in Qanat Quartier Marina. In Gewan Island, UDC finalized the sale of 70% of residential land plots.
Achieving these figures in 2020, which presented many challenges, is yet another indication that UDC is considered a trusted developer of premium real estate investment products.
It is worth mentioning that 2020 featured a myriad of new community initiatives, services and enhancement works, which contributed to UDC obtaining five ISO certificates that reflect the high level of public services provided at The Pearl-Qatar, and which give an incentive for continuous improvement of customer and visitor experience. UDC also won the International Safety Award 2020 and four awards as part of the Arabian Property Awards 2020, highlighting the excellence of the Company's projects at the regional level as well as the Company's commitment to the highest standards of quality and safety.
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 19.4 billion at 31 December 2020.
UDC activities cover a multitude of vital investment sectors including real estate development, property management, infrastructure and utilities, maritime & hospitality related businesses.