United Development Company (UDC), a leading Qatari public shareholding entity and the master developer of The Pearl-Qatar and Gewan Island, has achieved net profit of QR265mn on revenues of QR1.18bn in 2020.
The net profit attributable to equity shareholders was QR226mn, and basic earnings-per-share stood at QR0.064 with proposed dividends of 5%.
“Despite the challenges that businesses have faced in 2020 as a result of the coronavirus pandemic, UDC was able to maintain development activities throughout the year where we succeeded in completing the planned development phases at The Pearl-Qatar and Gewan Island,” said UDC chairman Turki bin Mohamed al-Khater.
In line with its business plan to develop promising projects, UDC awarded contracts worth QR1.5bn for the Gewan Island’s mixed-use buildings, landscape and infrastructure works.
This is in addition to signing technical services and management and operation pacts with Corinthia Hotels, and its connected golf course and beach club in Gewan Island, besides the new Yacht Club at The Pearl-Qatar.
“All these investments will ensure UDC’s sustainable growth and the creation of new opportunities and revenue sources over the long term,” he said, adding the proposed dividends are in line with value of the real estate projects that it is developing and cash outflow that will be spent on these projects in 2021 in accordance with its five-year business plan.
“We hope that the coming period will bring an increased demand for properties as a result of the new ministerial decision that allows foreign ownership of property and the privileges it carries to residents and investors, which will ensure the sustainable growth of the real estate sector, including our company,” al-Khater said.
UDC president and chief executive Ibrahim Jassim al-Othman said the stability in occupancy rates at The Pearl-Qatar contributed to achieving recurring revenues from residential and retail leasing, in addition to the sale of residential units and plots in 2020.
Residential occupancy further thrived with 140 new rental contracts signed for UDC properties and it also succeeded in achieving returns from the sale of 31 completed residential units at The Pearl-Qatar and the sale of 95% of residential units under construction in Al Mutahidah Towers.
This is in addition to the sale of all completed villas and low-rise building plots in Giardino Village as well as all residential plots in Qanat Quartier Marina. In Gewan Island, UDC finalised the sale of 70% of residential land plots.
The retail leasing witnessed an increase of 125% in new leased retail space in 2020 compared to 2019 and the opening of 28 new retail brands at The Pearl-Qatar, across the three main retail hubs in Porto Arabia, Medina Centrale and Qanat Quartier, al-Othman said.
UDC achieved major strides in the development of Gewan Island, with the completion of major marine works simultaneously with ongoing infrastructure works and it also completed main foundation works and started installing support pylons of Gewan Island’s main entrance bridge.
“UDC has accelerated development works all over The Pearl-Qatar, and as such Al Mutahidah Towers is now substantially completed, with apartments and retail units scheduled to be handed over to residents and retail tenants by beginning of second quarter of 2021,” he said.