Kuwait City, 12th November 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 third quarter of 2020. The Company achieved 11.08% growth in its net profits for the third quarter of 2020, amounting to KD 746 thousand, compared to KD 672 thousand for the same period in 2019. Earnings per share also increased by 0.69 fils for the third quarter of 2020 compared to 0.63 fils for the same period in 2019.
For the nine months period ending 30 September 2020, URC reported a net loss of KD 4.9 million compared to a net profit of KD3.1 million for the same period in 2019. Total revenues for the nine months of 2020 was recorded at KD 74.5 million compared to KD 86.7 million for the same period in 2019. This decline is mainly caused by the COVID-19 pandemic, in which it was partly covered by cost-saving initiatives, and the resilient performance of URC’s contracting and services verticals.
Commenting on the results, URC Vice Chairman and Group Chief Executive Officer Mr. Mazen Issam Hawwa said: “The Company’s performance in the third quarter of 2020 is underpinned by the recovery of its business activities namely in the shopping centers and the hotel properties. Challenges arising from the COVID-19 pandemic on the hospitality industry will ease once travel restrictions are lifted, and airports resume their normal operations.”
Mr. Hawwa also added, “The Company took multiple precautionary steps, mainly, negotiating with its lenders to ease repayment commitments and secure new facilities, and ensuring customer retention in its shopping centers. These measures have improved URC’s liquidity, performance, and sustainability of its businesses.”
In line with its objectives and project timelines, URC continues to progress with its development activities, locally and regionally, namely Hessah Towers, Byout Hessah, and the Commercial District, in the Hessah AlMubarak District. With expected completion in 2022, Hessah Towers achieved a key construction milestone by emerging above-ground level. Meanwhile, Byout Hessah will commence development by the end of this year and introduce its premium townhouses and apartments. In the Kingdom of Morocco, the infrastructure works for the Assoufid project is ongoing, while its design development is near completion.
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 619 million (US$ 2 Billion) as of 30 September 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 billion as of 30 September 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.