Kuwait City – 2 April 2020: United Real Estate Company K.S.C.P (URC), announced its financial and operating results for the year ended 31 December 2019, recording an increase in revenues by 10% to reach KD 113.8 million as compared to KD 103.5 million in 2018. The Company’s net losses decreased by 19.7% from KD 9 million in 2018 to KD 7.2 million in 2019.
The improvement in the financial results of the Company in 2019 were due to significant improvement in operating profits from contracting and services sector, an increase in rental revenues from commercial properties and stable revenues from hospitality business. Also, the Company was successful in its cost reduction program with reductions in its overall general and administrative expenses as well as its financing costs.
Total assets of United Real Estate Company increased by 1% to reach KD 623 million at the end of 2019 as compared to KD 617 million at the end of 2018.
Commenting on the results, URC Vice Chairman and Group Chief Executive Officer Mr. Mazen Issam Hawwa said, “Despite of ongoing challenges, the underlying assets of the Company and its operating entities performed relatively well, thereby resulting in the improvement of the operating performance of the Company. 2019 also witnessed the launch of the construction of Hessah Towers, a high-end residential development situated in Hessah AlMubarak District. The Company remains focused on enhancing the performance of its operating entities and committed to its development projects in Kuwait and abroad. The Company’s developments form a key part in URC’s strategy to diversify its portfolio and income stream.”
Mr. Hawwa concluded, “In light of the globally unfolding event of COVID-19 pandemic, URC and its Subsidiaries expresses its sincere appreciation and gratitude to all the brave men and women on the frontline, including medical personnel, law enforcement, defense forces, Government and Private sectors, and the Non-Government Organization volunteers; in combating the coronavirus outbreak in effort to keeping Kuwait and its people safe. May God protect our Country and the rest of the World from any harm.”
Mr. Mazen Issam Hawwa
Vice Chairman & Group Chief Executive Officer
United Real Estate Company. K.S.C.P (URC) is one of the leading real estate developers in Kuwait and the MENA region, with consolidated assets of KD 623 million (US$ 2 Billion) as of 31 December 2019. Headquartered in Kuwait, URC was founded in 1973 and was listed on the Kuwait Stock Exchange in 1984.
URC primarily operates through a number of operating subsidiaries and investment arms across the MENA region. The company’s core business is real estate development and operations and enjoys a diversified portfolio of assets that include retail complexes, hotels, residential properties, and high-rise office buildings.
URC’s operations extend to construction and contracting, facility management, and project management through its several subsidiaries. The company’s portfolio of assets and businesses are geographically spread across a number of countries through several assets such as Marina World, Marina Hotel, and KIPCO Tower in Kuwait, Salalah Gardens Mall & Residences in Oman, Abdali Mall in Jordan, Raouche View 1090 in Lebanon, Hilton Cairo Heliopolis & Waldorf Astoria Hotels in Egypt, Aswar Residences in Egypt, and Assoufid in Morocco.
URC is the real estate arm of the majority shareholder, KIPCO Group, one of the biggest holding companies in the Middle East and North Africa, and with consolidated assets of US$ 32 billion as of 30 September 2019. 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.