United Development Company Releases Q3 2017 Financial Results

October 26, 2017 / Financial News

Leading Real Estate Developer Delivers Positive Performance.
Revenue Increased by 18% Over Prior Period 2016 Results

United Development Company (UDC), one of the leading Qatari public shareholding companies announced its financial results for the nine months ending 30 September 2017 today. The Company’s net profit stands at QR 482 million on revenues of QR 1.5 billion. The net profit attributable to its owners is QR 436 million and basic earnings per share is QR 1.23.


UDC Chairman H.E. Mr. Turki bin Mohammed Al-Khater said: “UDC has posted results that reveal the true quality of the Company and its flagship project, The Pearl-Qatar. Even under challenging conditions, UDC has been able to sustain its business by offering premium, high quality office, residential and retail properties across a wide range of styles and quality that only The Pearl-Qatar can offer”.


Al-Khater continued by saying: “the strength of UDC rests with its broad mix of revenue sources that include land plots, apartment and townhouse as well as residential, office and retail leasing. This flexibility has allowed UDC to adopt to changing market conditions and follow the demand which in turn has helped make it a leader in its field and a leading Qatari shareholding company”.


Mr. Al-Khater re-enforced this point by announcing, “UDC will be developing Al Morjan Project, located adjacent to the Abraj Quartier district, into world class residential, commercial and entertainment development. Details of this new development will be formally announced once the design is completed but this project has the potential of becoming a magnificent destination that will help sustain UDC’s future growth”.


Mr. Ibrahim Al-Othman, UDC President and Chief Executive Officer stated that “UDC has been tested in 2017 but we have shown that we are flexible enough to achieve suitable financial results in the face of challenging business conditions. It is encouraging to see the momentum that is building and to know that we are on track to delivering favorable financial returns to our shareholders”.


Al-Othman continued by saying: “The Pearl-Qatar is now a mature development that is home to a growing community of 25,000 residents, yet there are many exciting residential, retail and entertainment concepts waiting to be rolled out that are a testament to the vast resources we have at our disposal. It is now apparent that The Pearl-Qatar is destined to become a premier investment, tourism and leisure hub for the State of Qatar”.


Mr. Al-Othman closed by saying: “Reliable streams of revenue, developed from diversified sources will enable UDC to sustain positive financial results from one year to the next even when the market is soft. In addition, cost saving initiatives have made UDC more cost efficient and thus more profitable.


The past nine months have been marked by many positive developments, with the foundation for several exciting development projects being laid that are designed to enrich the ambiance and life style experience of residents and visitors while boosting the occupancy rate of residential units and retail outlets in The Pearl-Qatar.


The third quarter witnessed the signing of an agreement with Mohammed Hamad Al Mana Group for the sale of land plot located on the island at La Plage South district. This land will be used for the development of a commercial mall, to be known as “04 Mall”.


This worth mentioning that opening of two new tunnels at The Pearl Interchange on Lusail Expressway has eased the traffic flow to and from the island and significantly reduced the travel time required to reach The Pearl Qatar and return to nearby areas. As a result, the number cars entering The Pearl-Qatar is noticeably higher.


In addition, The Pearl-Qatar’s three main retail hubs, Porto Arabia, Medina Centrale and Qanat Quartier, continue to welcome a large number of new local and international outlets and restaurants. These newly opened shops bring the total number of outlets across the island to 337 which are providing residents and visitors of the island with an exceptional leisure experience.


UDC continued its focus on improving the master community and common area amenities while introducing new facilities and features to residents across The Pearl-Qatar that are aimed at preserving and growing shareholders’ and investors' values. New prayer rooms - for men and women – were inaugurated as part of an integrated plan to increase the number of prayer rooms and make them more accessible throughout all retail hubs. These efforts mark UDC’s commitment to providing facilities of the highest standards to meet the needs of island’s residents and visitors alike.

UNITED DEVELOPMENT COMPANY

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