68% Increase in Revenue Compared to Previous Year
United Development Company (UDC), a leading Qatari shareholding company and master developer of The Pearl-Qatar, today announced its quarterly financial results for the first quarter of 2017. The Company’s net profit amounted to QR 244 million, while the net profit attributable to equity shareholders stood at QR 231 million, and the basic earnings per share stood at QR 0.65
The first quarter marked a special start of the year for the Company as it smoothly transitioned from 2016 and accelerated the development of various residential and commercial areas by allocating the necessary resources for promising leading projects in real estate and infrastructure development, hospitality, property management and others.
The first quarter of 2017 also saw an increase in revenues of 68% compared to the same period of last year. This reiterates the Company’s capacity to provide source of income with good returns despite the current instability in the real-estate market.
While UDC is well concentrated on long-term opportunities, it diligently continues to focus on its core activities, trusted to yield stable financial results.
During the first quarter, the Company witnessed a steady increase in the retail leasing percentage in The Pearl-Qatar. As such, the volume of leased retail properties during Q1 2017 increased by 22% compared to the first quarter last year, in addition to the sales volume of residential units of 25% on a year-by-year basis. This progressive trend is expected to continue as the island prepares to welcome a wider selection of retail shops on The Pearl-Qatar demonstrating UDC’s ability to increase revenues and maintain operational stability.
Moreover, the Company’s effective policy of managing general and administrative costs has resulted in a healthy expense to income ratio of 11%.
UDC’s achievements in the first quarter of 2017, include a great deal as the Company sold at a record time of 5 days, the first phase of residential units at Al Mutahidah Towers in Viva Bahriya. The Company also announced availability of The Pearl Tower 1 for leasing, which provides state-of-the-art office space and the latest commercial project on The Pearl-Qatar.
On the retail front, The Pearl-Qatar inaugurated 20 new shops in Porto Arabia, Medina Centrale and Qanat Quartier. The shops feature a variety of brands targeting a wide segment of the Island's population and visitors and represent a great addition to The Pearl-Qatar's list of attractions for visitors, tourists and residents alike.
In the first quarter of the year, UDC successfully launched a free public Wi-Fi solution on The Pearl-Qatar, in partnership with Ooredoo. The public Wi-Fi connection is now accessible to both visitors and shoppers.
The quarter also saw the opening of a Government Services Complex in Medina Centrale on The Pearl-Qatar, where ten governmental agencies and the Traffic Directorate offer their services to both citizens and residents. The Complex represents a significant addition to the myriad of integrated commercial services on the Island and comes to cement the position of The Pearl-Qatar as an ideal location to live and conduct businesses in the country.
UDC has also revamped its website, making it more accessible to users who will now enjoy a faster and richer browsing experience.
As for the Company’s construction projects, UDC kicked off infrastructure construction works at Giardino Village, one of the most promising residential areas on the Island, consisting of landscaped villas that offer spectacular views of the Island's mainland in addition to building 10 residential villas in the same location.
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 went on to be listed on the Qatar Exchange in June 2003. It has an authorized share capital of QR 3.54 billion and total assets of QR 18.3 billion at 31 March 2017.
UDC activities cover a multitude of vital investment sectors including real estate development, property management, infrastructure and utilities, energy-intensive industries, hydrocarbon downstream manufacturing, maritime related businesses, and hospitality.