UDC records QR681m net profit for 2016

08/02/2017 07:44 AST

Qatar's leading developer United Development Company (UDC) posted a net profit of QR681m for the year ended December 2016. The profit attributable to owners of the company stood at QR623m for the year.

UDC, the master developer of The Pearl Qatar , also reported an increase in revenue by 66 percent and proposed dividend distribution of QR1.25 per share. The earnings per share (EPS) of the company for the year stood at QR1.76.

Turki bin Mohammed Al Khater, UDC Chairman, said: "We should particularly remember 2016 as a year that saw our flagship project, The Pearl-Qatar, increasingly become a living, functional and dynamic entity as UDC has pumped investments into accelerating the pace of construction works laying the foundations for rewarding and sustainable returns for coming years. Our positive financial performance therefore leads the Company to propose dividend distribution of QR1.25 per share."

Al Khater also highlighted that in the year 2016, UDC has seen an increase in the Company's revenue and operating profit, closely associated with UDC's strategic emphasis on generating value to shareholders through focusing on core business functions. As such, revenue increased by 66 percent compared to last year and operating profit increased by 9 percent from last year.

He added: "We are committed to working hard in order to provide long-term value for our shareholders as we remain focused on improving our business and creating profitable investment opportunities for shareholders."

Ibrahim Al Othman, UDC President & CEO, noted that the year 2016 witnessed the execution of the first phase of the Company's five-year business plan.

"This was achieved through the conclusion of a series of agreements to develop in The Pearl, attract more residents and retailers and promote investment opportunities. This shows that The Pearl-Qatar constitutes an integrated investment product for investors who are seeking to increase their returns and diversify their portfolios", Al Othman added.

He said that in 2016, UDC sold two plots of land for the development of residential towers in Viva Bahriya and completed the sale transaction of The Pearl Tower 2. The residential leasing volume witnessed an increase of 8 percent , while volume of residential sales in 2016 increased by 81 percent , compared to 2015. The volume of leased retail properties during the year 2016 also increased by 32 percent compared to last year.

"The relentless work done by UDC in 2016, will reflect on the Company's projects and investments during 2017. In 2017, UDC will particularly concentrate on retail operations and vital utilities in Qanat Quartier, which is increasingly being recognized as a distinct destination of The Pearl", said Al Othman.

The Peninsula