(UDC), a leading Qatari public shareholding company and the master developer of The Pearl and Gewan Islands announced its financial results for the first half of 2022, reporting net profit of QR173m and revenues of QR855m. The net profit attributable to the equity shareholders was QR167.6m and basic earnings per share were QR0.047.
Turki bin Mohammed Al Khater, UDC Chairman said: “In the first half of 2022, UDC achieved a sustainable performance by balancing development and commercial activities across The Pearl and Gewan Islands with a continued focus on operational efficiency and delivery excellence. This strategy, coupled with our rich portfolio of existing and new projects launched thus far in 2022, has enabled UDC to sustain a diversified revenue stream”.
Al Khater further stated: “The financial results show positive improvement resulted from revenues of UDC’s latest residential projects at The Pearl Island, Giardino Gardens villas and two villa compounds in Floresta Gardens, as well as the positive effect of the World Cup’s housing dynamics which has led The Pearl Island to achieve its highest occupancy rate”.
“Looking ahead to remainder of the year, UDC will continue working on completion of development and operational plans for the projects under implementation, including United School International, Corinthia Yacht Club, The Pearl International Hospital as well as Floresta Gardens Compound 1 at The Pearl Island and Crystal Residence apartments in Gewan Island, which are aligned with established plans and timetables and which reflect our commitment to preserving shareholders’ and investors’ values”, Al Khater concluded.
For his part, Ibrahim Jassim Al Othman, UDC President and Chief Executive Officer and Member of The Board said: “The first half results are in line with UDC’s strategy to focus on delivering projects that are currently under development and as per the target completion schedules. We are equally fully committed to sales and leasing activities which serve to enhance our recurring revenues”.
Al Othman stated: “The Pearl Island maintains its position as a leading retail destination, as evidenced by the signing of new retail leases in the past six months, covering an area of 7,600 sqm including Floresta Galleria and Gewan Island. The Pearl Island has also welcomed 19 new stores since beginning of 2022, with 30 more brands expected to open by end of the year”.
Al Othman further pointed that residential occupancy also thrived with 193 new rental contracts signed for UDC properties, while UDC sold 44 completed residential units across The Pearl Island, and 13 residential units under construction in Gewan Island.
On the development side, UDC has completed major milestones in the construction of Corinthia Yacht Club in Porto Arabia, and successfully completed the Giardino Mall and United International School buildings, both of which have been handed over to their respective operators. The Pearl Island’s infrastructure update works are also progressing in full swing reaching 52% completion and aiming to enhance the Island’s safety, efficiency, and services.
In parallel, UDC has attained 58% progress on overall construction works across Gewan Island, where Corinthia Hotel’s enabling works were successfully completed and construction activities were commenced on the hotel, beach club and golf course. The development of Gewan Bridge has in turn reached 87% completion, and Crystal Residence’s construction 73%. Other project development components are also being executed as planned.
Commenting on the Company’s expected performance for the second half of the year, Al Othman said: “We will continue to exploit The Pearl Island’s position in the real-estate development sector as an ultimate choice and use our resources and experience to create a sustainable commercial and social environment that contributes positively to the project’s investment returns. In line with that strategy, and the increased demand for residential and commercial real estate on The Pearl Island, the closer we get to hosting the World Cup, UDC will continue to accelerate pace of its projects to accommodate expected significant increase in number of visitors to the world’s most prominent sporting event.”
In this regard, Al Othman indicated that UDC has recently launched a number of fully furnished residences for short term rentals and has formed a specialized committee to plan and coordinate all procedures, activities and recreational events that will be implemented during World Cup period to ensure traffic smoothness, security and safety, as well as improve the experience of residents, visitors and tourists during their stay at The Pearl Island. P12
