United Real Es­tate an­nounces 56% rise in net prof­its for Q3

Kuwait Times - - BUSINESS -

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

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