United Development Company (UDC), a leading Qatari public shareholding company and the master developer of The Pearl-Qatar and Gewan Island, has reported net profit of QR458mn on revenues of QR1.7bn in 2019. It has suggested 5% cash dividend.
“Despite a challenging real estate market in 2019, UDC achieved good financial results driven by the company’s success in performing featured real estate development projects and attracting new investments into The Pearl-Qatar amid the completion of major milestones across the Island,” said its chairman Turki bin Mohamed al-Khater.
Highlighting that the proposed dividends are in line with the volume of the realty projects that it will develop and the cash outflow that will be spent this year; he said investments in long-term projects, with an estimated amount of QR5.5bn and in accordance to the company's five-year business plan 2019-2023, will ensure sustainable growth and the creation of new opportunities and revenue sources over the long term.
“In line with this business plan, it is intended that capital contracts will be awarded for developing the projects with an amount of QR3bn and with cash outflow for those contracts amounting to an estimated QR1.9bn in 2020,” he said.
Retail leasing witnessed an increase of 18% in leased retail space compared with 2018 due to 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 the UDC properties, while residential sales more than doubled for the completed units and saw a 35% annual jump for residential units under construction in Al Mutahidah Towers.
UDC president and chief executive Ibrahim Jassim al-Othman indicated that 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.
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, he said.
“These projects will further bolster the Island’s position as an attractive destination for families and investors alike, and will ensure the company’s sustainable growth and the creation of new opportunities and revenues sources, therefore positioning UDC as a pioneer in shaping the future of urban development in Qatar,” al-Othman added.
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