Kuwait City, Thursday 25 March 2021
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 ended 31 December 2020.
The Company reported a net loss of KD 15.9 million in 2020 compared to net losses of KD 7.2 million in 2019. URC recorded an operating loss of KD 2.9 million in 2020 compared to an operating profit of KD 8.8 million in 2019.
The restrictions imposed by the government due to the COVID-19 pandemic had a negative impact on the economy which reflected on URC’s revenues and profitability during the year, impacting most of its business segments, with retail malls and hospitality sectors being the most affected.
URC’s total assets declined by 2.4% to reach KD 608 million at the end of 2020 compared to KD 623 million at the end of 2019.
Commenting on the results, URC Vice-Chairman & Group Chief Executive Officer Mr. Mazen Issam Hawwa said, “The COVID-19 pandemic created significant challenges on all fronts. URC and its people mitigated the losses by the proactive measures taken by the Company. These measures focused on customer concerns, retention, and sustainability of business to ensure prompt recovery after easing restrictions. Efforts also included cost-saving initiatives and restructuring the Company’s debts, which resulted in lower financing costs and improved liquidity levels.”
Mr. Hawwa added, “Despite the economic slowdown caused by the COVID-19 pandemic, the Company maintained occupancy levels in its retail malls at stable levels. The hospitality sector witnessed partial recovery due to the increased demand of local tourism and we are confident that the performance of our hotels will further improve with the acceleration of the vaccine rollout and lifting travel restrictions.”
URC continues to progress with its development activities, namely Hessah Towers, Byout Hessah, and the Commercial component, in Hessah AlMubarak District. Hessah Towers construction maintained timely progress with sales reaching 50% of its total units. URC recently witness the project launch of both Byout Hessah, and soon the Commercial District. During 2020, URC also achieved the successful sale of several residential units at Raouche View 1090 in Lebanon utilizing its proceeds for full repayment of its high-interest loan.
Mr. Hawwa concluded, “With this performance, the Company focuses on remaining resilient while mitigating arising challenges to ensure its business growth and sustainability, in line with its strategy-focused mission to be a leading developer and investor in the real estate landscape.”
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 608 million (US$ 2 Billion) as of 31 December 2020. Headquartered in Kuwait, URC was founded in 1973 and was listed on the Kuwait Stock Exchange in 1984.
URC primarily operates through several 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 is 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$ 34 billion as of 31 December 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.