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UDC’S GENERAL ASSEMBLY APPROVES DIVIDEND DISTRIBUTION OF QR 177 MILLION EQUIVALENT TO 5% OF THE SHARE PAR VALUE
Al-Khater: "The proposed dividends are in line with the volume of the real estate projects that UDC will develop and the cash outflow that will be spent in 2020".
Al-Khater: "Capital contracts for developing UDC projects in 2020 worth QR 3 billion with cash outflow for those contracts amounting to QR 1.9 billion".
Al-Othman: "Positive results in 2019 were enhanced by the recurring revenue generated from the sale and leasing of residential and retail units at The Pearl-Qatar".
Al-Othman: "Promising financial prospects for 2020, with the launch of new projects at The Pearl-Qatar and the start of development of Gewan Island".
United Development Company (UDC) Ordinary General Assembly, that was held yesterday and chaired by UDC Chairman, H.E. Mr. Turki bin Mohammed Al-Khater, approved the distribution of cash dividends of QR 177 million, equivalent to 5% of share par value.
During the meeting, the Assembly approved UDC’s financial statements for the year ending December 31, 2019, and the appointment of KPMG as the Company's external auditor for 2020.
In this context, H.E. Mr. Turki bin Mohammed Al-Khater said: “The Company has achieved a net profit of QR 458 million and total revenues of QR 1.76 billion. The net profit attributable to shareholders of the parent Company was QR 423 million with basic earnings per share of QR 0.120. These profits are considered good and notable compared to that of major real estate companies in the region, which recorded significant losses”.
“These financial results demonstrate the achievability of UDC’s strategy of diversifying its revenues through the sale and leasing of real estate properties, while investing in the ongoing development of The Pearl-Qatar and long-term ventures, such as Gewan Island”, H.E. Mr. Al-Khater added.
H.E. Mr. Al-Khater also highlighted that UDC’s development strategy focuses on supporting Qatar real estate sector in line with the government initiatives to encourage and enhance real estate investment opportunities for local and foreign investors by providing all related necessary facilities and support.
UDC’s investments in long-term projects, with an estimated amount of QR 5.5 billion and in accordance to the Company's five-year business plan 2019-2023, ensure the Company’s sustainable growth and the creation of new opportunities and revenue sources over the long term.
H.E. Mr. Al-Khater continued by saying: “In line with this business plan, it is intended that capital contracts will be awarded for developing projects with an amount of QR 3 billion and with cash outflow for those contracts amounting to an estimated QR 1.9 billion during 2020”.
H.E. Mr. Al-Khater highlighted that as part of UDC’s constant endeavor to enhance the efficiency employed in managing its financial resources, for example, it has settled in 2019, bank loans installments amounting to approximately QR 532 million, which led to reducing the Company’s financing cost by 13% compared to the year 2018.
H.E. Mr. Al-Khater further stated: “The proposed dividends for this year are in line with the volume of the real estate projects that the Company is developing and the cash outflow that will be spent on these projects during the year 2020.
For his part, UDC President and Chief Executive Officer and Member of The Board, Mr. Ibrahim Jassim Al-Othman, described 2019 as a year of focus and consolidation of efforts behind UDC’s core business; real estate.
Mr. Al-Othman also indicated: “The stability in occupancy rates at The Pearl-Qatar, enhanced recurring revenue generated from the leasing of residential and retail units, as well as the sale of residential units and plots in 2019”.
Mr. Al Othman said: “Retail leasing witnessed an increase of 18% in leased retail space compared to 2018 and the opening of 65 new retail brands at The Pearl-Qatar, across the three main retail hubs in Porto Arabia, Medina Centrale and Qanat Quartier. Residential occupancy further thrived with 178 new rental contracts signed for UDC properties, while UDC residential sales achieved a 115% increase for completed units and a 35% increase for residential units under construction in Al Mutahidah Towers, compared to 2018.”
According to Mr. Al-Othman, “Impressive sales of plots in Giardino Village, Floresta Gardens and Qanat Quartier Marina in addition to Gewan Island in 2019, are yet another indication that UDC is considered a trusted developer of premium real estate investment products”.
Highlighting the Company’s plans and prospects for 2020, Mr. Al-Othman said: “The fundamental development phases achieved in 2019 will enable UDC to pursue its growth journey, and to capitalize on two decades of excellence in the delivery of sustainable ventures to residents, investors, businesses and shareholders alike. As such, 2020 is going to be all about achieving our goals with Gewan Island being the cornerstone for our future developments”.
UDC, the master developer of The Pearl-Qatar and Gewan Island, 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 was first listed on the Qatar Exchange in June of 2003. It has an authorized share capital of QR 3.5 billion and total assets of QR 18.2 billion at 31 December 2019. UDC activities cover a multitude of vital investment sectors including real estate development, property management, infrastructure and utilities, maritime & hospitality related businesses.