United Real Estate Company Continues to Achieve Positive Results with 70% Increase in Operating Profits for Q3 2023

Nov 11 , 2023

Kuwait City by URC | Press Release

United Real Estate Company K.S.C.P (URC), the real estate arm of KIPCO Group and a leading real estate developer and investor in Kuwait and the MENA region, announced its financial results for the third quarter ended 30 September 2023.

Net profit for the first nine months of the year 2023 was KD 4.7 million compared to KD 8.2 million for the same period of 2022. Furthermore, the company's operating profit displayed a growth during the first nine months of 2023, surging by 41% and reaching KD 18.8 million, as compared to KD 13.3 million in the same period of preceding year.

In Q3 2023, URC has continued to achieve positive financial results, showcasing substantial growth in its core operations of Rental and Hospitality. During Q3 of the year 2023, these segments reported an increase in revenue, demonstrating a growth of 29.2% when compared to the same period in the previous year 2022, meanwhile the contracting and services sector witnessed a decrease in the revenues reached to KD 7 million comparing to KD 10.6 million in the same period of 2022. Moreover, for the nine months of 2023, URC's Rental and Hospitality operations exhibited robust financial performance with a 36.5% growth in revenue compared to the same period last year.

Additionally, the operating profit for URC has shown noticeable growth in the 3rd quarter of 2023, with a significant increase of 70.3% compared to the corresponding period in the previous year. This positive trend in profitability extended to the nine months of 2023, where URC achieved a notable growth of 41.4% in operating profit when compared to the similar period in the previous year. These results reflect URC's commitment to delivering promising financial performance and continued success in its core business operations.

Commenting on the financial results, Mr. Mazen Issam Hawwa, URC Vice Chairman and Group Chief Executive Officer, said: "In the third quarter of 2023, URC continued its steadfast journey of growth and financial resilience. We are delighted to announce another quarter of positive financial results. The increase in net profit, along with the adequate rise in operating profit, reflects our persistent dedication to consistently enhance the company’s asset portfolio and strengthen its ability for revenue growth. These achievements are a testament to our strategic approach and ability to adapt to market dynamics.”

“As we move forward, we remain focused on innovation, sustainability, and delivering value to our stakeholders. The healthy financial performance underscores URC's resilience and strength, and we look forward with enthusiasm to the promising opportunities on the horizon.” Mr. Hawwa concluded.

It is worth mentioning that in 2023, URC achieved significant recognition and accolades from prestigious local, regional, and international organizations, including Euromoney, reaffirming its standing as a distinguished player in the real estate and development sector. These awards underscore URC's commitment to excellence, innovation, and adherence to international standards.

About URC

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 Approx. KD 669 million (US$ 2.2 Billion) as of 30 September 2023. Head quartered 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 is geographically spread throughout the MENA region and includes 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), a holding company that focuses on investments in the Middle East and North Africa. It’s strategy of acquiring, building, scaling and selling companies in the MENA region has worked successfully for over 30 years. KIPCO’s main business sectors are financial services, media, real estate, and industry. KIPCO’s financial service interests include holdings in commercial banks, insurance companies, asset management, and investment banking.

Contact Info

Salem Al Khulaqi

Communications Manager – Sales & Marketing
United Real Estate Company

T (+965) 2295 3671

F (+965) 2244 1003