UDC records solid net profit; revenue grows by 18%
25 Oct 2017 - 22:42
United Development Company (UDC), Qatar’s leading real estate developer, reported a net profit of QR482m for the first nine months of this year ended September. The company’s revenue grew by 18 percent year-on-year to QR1.5bn. The net profit attributable to its owners reached QR436m and basic earnings per share is at QR 1.23.
Commenting on the results, UDC Chairman 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. 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”, he said.
The Chairman said 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.
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”.“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”, Ibrahim Al Othman, UDC President and CEO, said.
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 UDC President said.
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”.