UDC posts solid QR544m net profit for 2018; revenues at QR1.6bn

United Development Company (UDC), the master developer of The Pearl-Qatar and Gewan Islands, recorded a net profit of QR544m and revenues of QR 1.6bn for the year 2018.The net profit attributable to equity shareholders stood at QR501m, and basic earnings per share was QR1.41.

UDC Chairman, Turki bin Mohammed Al Khater said: “2018 financial results, given the challenging conditions under which they were achieved, demonstrate the Company’s flexibility to secure diversified revenue streams, to sustain good financial results in challenging economical situations”.

In 2018, UDC pursued to the continuation of development in The Pearl-Qatar, completing many milestones in accordance to the masterplan, Al Khater added.

Key ongoing developments on the Island include Giardino Village, Floresta Gardens and Al Mutahidah Towers project, which witnessed in 2018 the construction of the Towers’ connecting bridge, the most complicated element of the project, and a unique feature among towers on the Island. Each of these developments are uniquely designed to further enhance the ambiance of the Island, while attracting ever more investors, residents, retailers and visitors, thereby assuring the economic viability of The Pearl-Qatar for years to come.

Al Khater said: “Building on its success, UDC has revealed the project of constructing “United School International”, an international school which will be developed in Giardino Village precinct to meet the needs of the community at The Pearl-Qatar Island and the neighborhood, in addition to the commencement of construction works for two commercial showrooms in Abraj Quartier”.

Capitalizing on its success, UDC launched its latest real estate development project; Gewan Island, an integrated venture adjacent to The Pearl-Qatar.

Al Khater said that the development of Gewan Island is part of UDC’s upcoming five-year business plan, of which QR5.5bn worth of investments will be embarked, reflecting the Company’s strong commitment to the development of sustainable projects across Qatar.

“UDC’s business strategy remains focused on creating opportunities and partnerships, achieving growth, minimizing risks and sustaining progress, which further contributes to Qatar’s economic diversification and benefits our investors, developers, owners, residents and tenants alike,” the Chairman said.

UDC President and Chief Executive Officer, Ibrahim Jassim Al Othman, affirmed UDC’s dedication in advancing and executing its distinctive development projects, while pursuing financial returns that meet the expectations of shareholders, in light of the good financial results achieved in 2018.

“The sound financial results for 2018 were driven primarily by a combination of sale and lease of real estate properties, as well as cost efficiencies. Several cost optimization initiatives were implemented this year that resulted in UDC attaining more favorable terms for its supplies, and realizing other cost proficiencies,” Al Othman explained.

The President and CEO indicated that the increase in the occupancy rates enhanced recurring revenue generated from the leasing of office, residential and retail units in 2018.

The volume of office space under lease at UDC Tower reached to 21 percent, while the number of residential properties under lease increased by 31 percent year over year. Meanwhile, the volume of retail areas under lease is steadily maintained at 58 percent year over year.

“UDC will continue to expand its retail and residential offerings in 2019, while pursuing development works in The Pearl-Qatar”, Al Othman added. He said UDC’s commitment to improving customer experience has cemented The Pearl-Qatar’s position as an increasingly popular destination for office, residential and retail tenants to live and work. This was evident in the number of vehicles entering The Pearl-Qatar, which rose from 11 million in 2017 to 13 million in 2018.

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 QR3.5bn and total assets of QR18.3bn. UDC activities cover a multitude of vital investment sectors including real estate development, property management, infrastructure and utilities, maritime & hospitality related businesses.


Source from: The Peninsula