UDC Chairman Turki Al Khater
DOHA: Qatar’s leading developer United Development Company’s (UDC) revenues rose by 7 percent to QR1.3bn for the third quarter ended September 2016. The company recorded a net profit of QR484m. UDC’s net profit attributable to owners of the company stood at QR452m while earnings per share amounted to QR1.28, and this was achieved despite the overall challenges affecting the real estate market.
Announcing the financial results here yesterday, UDC Chairman Turki Al Khater said: “Sustainable performance was maintained over the past three months, as the company’s net profit increased by 37 percent from that achieved at the end of the second quarter of 2016. The third quarter results reflect the company’s ambition for growth in different segments, and most notably The Pearl-Qatar, where our continued focus on project delivery of premium residential and outstanding commercial units enables the company to be well positioned as leader in the real estate development sector”.
“Our commitment is to work hard and deploy appropriate strategies to ensure continuity of focus on providing added value to our shareholders, and to achieve satisfactory returns for them, where percentage of return on equity reached to 4 percent as of September 30, 2016. In doing so, we continue to grow and achieve our strategic objectives set, and focus in improving our activities. We have our eyes equally set on new and innovative business ideas and opportunities in order to enhance the synergies with our operating companies.” added Al Khater.
Commenting on the results, Ibrahim Jassim Al Othman, UDC President and Chief Executive Officer said: “The stable financial results delivered for the third is a result of our continuous commitment to provide an added value to our shareholders and customers while concentrating on our core business. The reported results for the nine months’ period ending 30 September 2016, were more than those budgeted.”
During Q3, UDC signed a sale and purchase agreement for the sale of a residential tower plot in Viva Bahriya precinct, while the company continued to work on generating continuous revenue from its core operation as this is demonstrated in the company’s recorded remarkable growth in the core sources of income, noting the growth in the volume of residential units leased in the first nine months of 2016, which witnessed increase by 2 percent compared to the same period last year.
Meanwhile, retail leasing volume has recorded an 11 percent increase in the nine months period of 2016 compared to 2015 figures. Residential sales volume have also seen a rise of 81 percent in the period ending 30 September 2016 compared to the same period last year, and all these are reflecting the company’s ability to achieve revenue and good operational performance.
“We are in one of the most exciting phases of our growth story as UDC will soon start construction works on the main building of our newest development Al Mutahidah Towers, located in Viva Bahriya. In addition to the construction of villas in Girdano area along with infrastructure works for the same area”, the UDC President and CEO said.
“While focusing to increase revenue streams in Q4, our primary focus will be to populate Qanat Quartier’s up and coming retail area, with an eclectic yet selective mix of retailers besides other vital facilities.”, he added.
Throughout its 17 years of activity, UDC has played a key role in the development of Qatar through creation of successful partnerships and urban development projects, namely the flagship man-made Island, The Pearl-Qatar. Owned and developed by UDC, The Pearl-Qatar is one of the largest mixed-use urban developments in GCC and State of Qatar.
Other companies under UDC’s umbrella also include Hospitality Development Company, Ronautica Middle East, Madinainova, United Technology Solutions and The Pearl Owners Corporation among many others. UDC’s target areas of interest include: infrastructure, real estate management, urban development, environmental-related businesses, hospitality and leisure, information technology, business and facility management services.
