United Development Company’s Annual General Assembly Approves Cash Dividend Distribution of QR 1.25 / Share

March 21, 2018 / Financial News

Dividend Distribution is Equivalent to 12.5% of Share Capital


United Development Company (UDC), held its Annual Ordinary and Extraordinary General Assembly Meetings on Wednesday, March 21, 2018 in the Marsa Malaz Kempinski Hotel at The Pearl-Qatar.


The meeting was chaired by H.E Mr. Turki bin Mohammed Al-Khater, Chairman of the Board of Directors and attended by UDC Board of Directors.


During the Ordinary General Meeting, all agenda items were discussed and adopted, as follows:


1. The Board of Directors’ report on the company’s performance, including future plans, and its financial position for the fiscal year ending December 31, 2017.


2. The Auditor’s report on the company’s financial statements, including the Statement of Financial Position as at December 31, 2017 and Statement of Profit or Loss for the fiscal year ending December 31, 2017.


3. The Board of Directors’ recommendation regarding the distribution of equivalent to QR 442.6 million of dividends, representing12.5 % of Share Capital and equal to QR 1.25 for each share.


4. Discharge members of the Board of Directors from liability for the year ending December 31, 2017, and approve their remuneration.


5. The Corporate Governance Report for the year 2017.


6. Recommendation to appoint the company’s External Auditor for fiscal year 2018 and determine their fees.


During the Extraordinary General Meeting, an amendment to the company's Articles of Association was approved so as to comply with Corporate Governance and Legal Entities Regulations.


When discussing the Company’s 2017 activities and financial results, H.E. Mr. Turki bin Mohammed Al-Khater, Chairman of the Board of Directors said, “Despite the economic uncertainties that prevailed during the year, 2017 results were still positive. This demonstrates that UDC has a viable business model with the flexibility necessary to access diversified revenue streams as needed to sustain satisfactory financial results even in turbulent times.” In this regard, Al-Khater pointed that increase in retail leasing at The Pearl reached 24% in 2017, while residential occupancy rate remained constant in comparison to 2016.


He continued by saying, “The foundation for UDC’s financial stability is drawn from the great variety of attractive properties currently available and the exciting new properties under development at The Pearl-Qatar, all set within a safe, secure and self-sufficient community”.


Al-Khater also highlighted that UDC's business strategy remains focused on creating opportunities and partnerships, achieving growth, minimizing risks and sustaining progress. He said, “The Board has astutely directed the company to progress the new opportunities that are being generated on the island so that UDC can continue to profit from the mutually beneficial relationships that businesses at The Pearl-Qatar naturally attract.”


He concluded by saying: “2017 has been a satisfactory year for UDC, even under less than stellar economic conditions, with the maturation and development of The Pearl-Qatar.”


Mr. Ibrahim Al-Othman, UDC President & Chief Executive Officer described 2017 as being another productive year for UDC. “Good financial results were achieved under challenging conditions, the pace of development of The Pearl-Qatar continued to accelerate in a cost effective manner and the “customer experience” of residents, retailers and visitors at The Pearl-Qatar was further enhanced”.


Al-Othman continued by saying, “major sales of land were concluded in 2017 with multiple developers for the construction of a Commercial Mall and Mixed Use Facilities. These sales demonstrate that non-UDC developments on the island are commercially viable”. He also noted that, “recurring revenue from the leasing of residential and retail units held steady year over year, reaffirming that The Pearl-Qatar was a popular place to live, dine and shop”. In addition, he advised that “The Pearl Tower 1 was now complete and ready for occupancy. This world class office tower was in the process of being leased with 13,132 sqm., equivalent to 24% of total leasable area, currently under contract for 2018.”


UDC President & CEO concluded by saying, “the full development of The Pearl-Qatar is starting to take shape and glimpses of brilliance abound. These are very exciting times for everyone involved and I am confident that with continued dedication and hard work, 2018 will be a remarkable year for UDC, and another great step forward in our collective journey.”


Key developments on the island that are currently in progress include Al Mutahidah Towers, Giardino Village, and Floresta Gardens (under design stage). Each of these developments are being designed with the specific intention of further enhancing and diversifying the residential offerings on the island, attracting more investors, residents, visitors and retailers, and sustaining The Pearl-Qatar’s viability for years’ to come.


In addition, a special new island project is being launched in 2018. The island is an extension of The Pearl-Qatar and a continuation of UDC's commitment to deliver exceptional lifestyle experiences.


Continuously improving the “customer experience” of residents, retailers and visitors at The Pearl-Qatar has always been a high priority for UDC. In 2017, several notable enhancements were realized, including: opening Khadamati, a one-stop service center in Medina Centrale, opening two new tunnels at The Pearl Interchange by the Public Works Authority (Ashghal); adding free public Wi-Fi services to all retail public areas; revamping The Pearl-Qatar’s mobile application and website, and adding new prayer rooms for men and women throughout the island.


United Development Company (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 became listed on the Qatar Exchange in June 2003. It has an authorized share capital of QR 3.54 billion and total assets of QR 18.34 billion at 31 December 2017.


UDC’s principal activity is to contribute and invest in infrastructure and utilities, hydrocarbon and energy, urban development, environment related businesses, marina and related services, hospitality and leisure ventures, business management and information technology solutions.

UNITED DEVELOPMENT COMPANY

info@udcqatar.com

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