United Real Estate announces 56% rise in net profits for Q3
United Real Estate Company (URC) has announced a net profit of KD 4.91 million for the first nine months of 2016, an increase of 1 percent on the KD 4.88 million reported for the same period of 2015 and earnings per share stood at 4.57 fils.
URC’s net profit for the third quarter of 2016 (three months ended 30 September 2016) reached KD 1.91 million, compared to KD 1.22 million for the same period last year, achieving a growth of 56 percent. Total revenue for the first nine months of 2016 increased by 10 percent to reach KD 50 million, as compared with KD 45 million achieved in the same period of last year. Additionally, total assets increased to KD 571 million, compared to KD 554 million at the end of 2015.
Commenting on the results of the third quarter, Ahmad Kasem, Acting Chief Executive Officer of URC, said: “Our results reinforce URC’s success in achieving its overall strategy through optimizing the company’s diverse business activities and delivering sustainable growth in challenging market conditions.” Kasem added: “Our focus is to build a self-sustainable capacity to finance, develop, sell, and manage our various projects in the GCC, MENA region, and North Africa, in addition to leveraging our subsidiary businesses specializing in construction, facilities management, and project management, which include United Building Company (UBC), United Facilities Management (UFM), and United International Project Management Co. (UIPM). ““To support expansion and secure the necessary cash flow for planned future developments amidst current market challenges, URC has taken effective, strategic measures over the past nine months in regards to the company’s pipeline projects, in addition to building a solid foundation for efficient management of its operating assets in order to maximize shareholder value.” United Real Estate Company (URC) is one of the MENA region’s leading real estate developers, with total assets of KD 571 million (US$ 1.9 Billion) as of September 30, 2016. Head quartered in Kuwait, URC was founded in 1973 and was listed on the Kuwait Stock Exchange in 1984.
URC primarily operates in the Middle East and North Africa (MENA) region through a number of operational subsidiaries and investments arms. The company’s portfolio includes retail complexes, hotels, resorts, residential buildings, high rise office buildings, as well as mixed use developments. Operational assets include, KIPCO Tower, Marina Hotel and Marina Mall in Kuwait as well as Salalah Gardens Mall & Residences in Oman. Regionally, URC is developing Abdali Mall in Jordan, Raouche View at 1090 in Lebanon, Aswar Residences in Egypt, Junoot Resort in Oman and Assoufid in Morocco.
URC’s majority shareholder is KIPCO Group, one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of $ 33 billion as at 30 September 2016. The Group has significant ownership interests in over 60 companies operating across 24 countries. The group’s main business sectors are financial services, media, real estate and manufacturing. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors.
Ahmad Kasem, Acting Chief Executive Officer of URC