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Friday, April 26, 2024 14:49 GMT
United Development Company (UDC), one of Qatar’s leading real estate giants, has announced its plans to award capital contracts worth QR3 billion (US$831.935 million) for developing various projects of the company in 2020, including the iconic Gewan Island, its latest flagship real estate venture. The company’s investments in long-term projects (2019-2023) is estimated at QR5.5 billion (US$1.525 billion).This was announced during the UDC’s Ordinary General Assembly by Chairman, Turki bin Mohammed Al Khater, who presided over Company’s AGM. The AGM approved all the items on the agenda of the meeting, including the board’s recommendation for the distribution of cash dividends of QR177 million (US$49.084 million), equivalent to 5 % of share par value.Al Khater, while addressing the shareholders of the company, said: “In line with the business plan (of UDC), it is intended that capital contracts will be awarded for developing projects with an amount of QR3 billion (US$831.935 million) and with cash outflow for those contracts amounting to an estimated QR1.9 billion (US$526.892 million) during 2020.”Commenting on the financial performance of the Company in 2019, he added: “The Company has achieved a net profit of QR458 million (US$127.009 million) and total revenues of QR1.76 billion (US$488.069 million). The net profit attributable to shareholders of the parent Company was QR423 million (US$117.303 million) with basic earnings per share of QR0.120 (3.3 cents). 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”, Al Khater added.He 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 QR5.5 billion (US$1.525 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.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 QR532 million (US$147.530 million), which led to reducing the Company’s financing cost by 13 % compared to the year 2018.He also said: “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.”UDC President, CEO and Board Member, Ibrahim Jassim Al Othman, described 2019 as a year of focus and consolidation of efforts behind UDC’s core business; real estate.“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,” Al Othman added.“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 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, he said: “The fundamental development phases achieved in 2019 will enable UDC to pursue its growth journey, and to capitalise 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.