Kuwait developer URC posts KD 22.5 mln net profit in ’12
AGM approves dividend worth KD 18m to shareholders
Estate
KUWAIT CITY, April 14: The United Real Estate Company (URC), the Middle East’s leading real estate development company, has announced it has made a net profit of KD 22.5 million during 2012 — a 122 percent profit compared to previous year.
This was disclosed during its General Assembly Meeting today which was held at the Al Shaheed Tower in downtown Kuwait City.
The General Assembly Meeting approved a dividend distribution of shares worth KD 18 million to shareholders from its ownership in United Towers Holding Company.
The price per share, as per the Book Value, is equivalent to 0.1397 fils per share. The total amount distributed will be 128 million shares of United Towers Holding Company which is equivalent to 0.1085 shares for each share of United Real Estate Company.
Tariq Mohammed AbdulSalam, Chairman of URC commented saying: “The URC is one of the Middle East’s leading real estate development companies, with total assets of KD 550.9 million ($ 1.96 billion).
Headquartered in Kuwait, URC was founded in 1973 and was listed on the Kuwait Stock Exchange in 1984.
He added, “The Company was able to apply its ambitious strategy by diversifying sources of income and by the geographical distribution of our projects in the region including Kuwait, Egypt, Jordan, Lebanon and Oman.
“We are delighted to report that despite the difficult economic and political conditions in 2012, the company was able to achieve outstanding results and record an increase in prof- it, as well as an increase in the acquisition of assets.”
Addressing the shareholders, AbdulSalam said URC continues to follow a balanced and ambitious strategy in the face of political and economic uncertainly that “We are witnessing locally and regionally, and hopes to continue delivering excellent financial results for many years to come.
“I would like to take this opportunity to express our deepest appreciation and gratitude to you, our shareholders, for your continuous support and valuable trust in us.
“I would also like to thank URC’s executive management team members for their effective and dedicated efforts,” he said.
Engineer Mohammed Ahmed AlSaqqaf, Chief Executive Officer (CEO) of the URC’s said: “At URC, we will continue to set the industry benchmark and achieve a steady growth in our operational revenue.”
In his address to shareholders, he said, the year, 2013, he said, witnessed continued geopolitical unrest in MENA region especially in Egypt and Syria with varying conditions and severity. Although Jordan and Lebanon did not have a similar level of unrest, the overspill from the situation in Syria had its impact on the economic situation in these markets.
Sales activities, he added, slowed down in Jordan and Lebanon, and investors seemed weary and careful on committing to new investments.
Conditions
“Markets such as Qatar and Dubai benefited from these conditions although it may very well be a temporary spike directly related to the turbulent times we are witnessing,” he said.
He disclosed, the URC’s current projects under development include Abdali Mall in Jordan, Junoot in Oman, Salalah Gardens Mall in Oman, the luxurious Raouche View 1090 residential building in Lebanon, and the Aswar Residential Community in Egypt.
In Kuwait, he said, the URC’s development portfolio includes Marina Mall, Marina Hotel, Marina Crescent, Al Madina and Al Shaheed Towers, and the recently inaugurated KIPCO Tower.
The URC’s majority shareholder is Kuwait Projects Company (KIPCO), one of the largest and most diversified holding companies in MENA region, with assets under management worth KD 7.2 billion ($26 billion) as at Dec 31, 2012.
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.