United Development Company (UDC) has posted a third-quarter net profit of QR484mn, while its revenues amounted to QR1.3bn, up 7% on the same period last year.
The results were announced by UDC chairman Turki Mohamed Khalid al-Khater here yesterday.
Net profit attributable to owners of the company stood at QR452mn, while earnings per share amounted to QR1.28, and this was achieved despite the overall challenges affecting the real estate market.
On the company’s financial results, al-Khater said, “Sustainable performance was maintained over the past three months, as the company’s net profit increased by 37% 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% as of September 30. 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.”
UDC president and chief executive officer Ibrahim Jassim al-Othman said, “The stable financial results exhibited in the third quarter of 2016 are 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 on September 30, were more than those budgeted.”
Al-Othman also said that during the third quarter, UDC signed a sale and purchase agreement for the sale of a residential tower plot in Viva Bahriya precinct. The company has been working on generating continuous revenue from its core operation as this is demonstrated in the remarkable growth in the core sources of income. The growth in the volume of residential units leased in the first nine months of 2016 increased by 2% compared to the same period last year.
Meanwhile, retail leasing volume has recorded an 11% increase in the first nine months of this year compared to 2015 figures. Residential sales volumes have also seen a rise of 81% in the period ending September 30 compared to the same period last year. “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,” al-Othman said.
He 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.”
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, one of the largest mixed-use urban developments in Qatar as well as the Gulf.
Other companies under UDC’s umbrella include Hospitality Development Company, Ronautica Middle East, Madinainova, United Technology Solutions and The Pearl Owners Corporation.