Mazen Issam Hawwa
URC Vice Chairman & Group Chief Executive Officer
Kuwait City, Thursday 13 August 2020 – United Real Estate Company K.S.C.P (URC), a leading real estate developer in Kuwait and the MENA region, announced its financial results for the year for the First Half of 2020.
During the first quarter ending on 31 March 2020, the Company achieved a growth in its operating revenues by 39.49%, reaching KD 34.4 million, as compared to the same period in 2019, which amounted to KD 24.7 million. The Company also recorded a net profit for the first quarter of 2020, which amounted KD 1.67 million as compared to KD 781 thousand to the same period in 2019, at an increase of 113.64%.
The growth was mainly driven by an increase in the Company’s operating profits from its Subsidiaries and Associates, as well as its decrease in its financing costs and general expenses, despite the impact caused by COVID-19 on the revenues of its hotel and resort activities and operations.
URC, however, was affected by the unfolding economic and financial fallouts due to the coronavirus pandemic. The Company recorded a net loss of KD5.65 million for the six months ending on 30 June 2020, as compared to a profit of KD 2.41 million in the same period of 2019. While the total operating income decreased by 3.13% to amount to KD 52.8 million in the first half of the current year, as compared to KD 54.5 million for the same period in 2019.
Additionally, these results reflected negatively to the Company’s performance due to its adherence to governments and health authorities’ measures by heeding to their mandatory guidelines during the partial curfew and the full lockdown periods. The Company observed these procedures by suspending its hotel and resort activities as well as its commercial malls in the MENA region at the end first quarter of this year. URC also granted exemptions to its tenants within these properties in support of their financial hardships during this period until normal life and business activities resumed.
Commenting on the results, URC Vice Chairman and Group Chief Executive Officer Mr. Mazen Issam Hawwa said: “With the recorded growth achievement of URC’s financial results in the first quarter, and despite the unprecedented challenges that the region and the world witnessed due to the pandemic and its repercussions on the markets, the Company continues to progress with its operational activities and real estate projects, locally and regionally, in line with its plans and strategies. URC will focus on the development, construction, and completion of its investment portfolio in the Hessah AlMubarak District, namely Hessah Towers, Byout Hessah, and the Commercial District, according to its project timeline. The Hessah Towers project, which expects to be complete by the end of 2022, is still in progress, although it encountered minor delays in construction due to the government measures to impose the full lockdown. In the Kingdom of Morocco, URC completed the design development for the second phase of the 2.5 million square meters Assoufid project, which includes The St. Regis Marrakech Resort and premium villas and apartments.”
In the light of the globally unfolding event of COVID-19 pandemic, Mr. Hawwa expressed sincere appreciation and gratitude, on behalf of URC and its Subsidiaries, the men and women on the frontline combating the coronavirus outbreak and keeping Kuwait and the world safe and contained from this disease.
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 622 million (US$ 2 Billion) as of 30 June 2020. 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. URC’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 services, facility management, and project management through its several subsidiaries. URC’s portfolio of assets are geographically spread throughout the MENA region 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, and Aswar Residences in Egypt, and Assoufid development including a golf resort, five-star hotel, and premium residences in Morocco.
URC is the real estate arm of its majority shareholder, Kuwait Projects Company – Holding (KIPCO Group), one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 33.5 billion as of 30 June 2020. 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.