United Development Company (UDC), a leading Qatari shareholding company and master developer of The Pearl-Qatar, has reported a net profit of QR681 million ($187 million) for 2016.

Announcing the 2016 results, UDC said the net profit attributable to owners of the company was QR623 million, while the earnings per share stood at QR1.76.

The revenue for the financial year surged by 66 per cent over 2015, while the operating profit increased by nine per cent, it stated.

However, as per TradeArabia News Service statistics, the UDC's net profit for 2016 fell marginally from
QR732.8 million ($201 million) to QR681 million ($187 million) last year.

UDC chairman Turki bin Mohammed Al Khater said: "We should particularly remember 2016 as a year that saw our flagship project, The Pearl-Qatar, increasingly become a living, functional and dynamic entity as UDC has pumped investments into accelerating the pace of construction works laying the foundations for rewarding and sustainable returns for coming years."

"Our positive financial performance therefore leads the company to propose dividend distribution of QR1.25 per share," noted Al Khater.

Impressed with the results, UDC board of directors has proposed dividend distribution of QR1.25 per share.

Al Khater said UDC had seen an increase in the company’s revenue and operating profit in 2016, closely associated with its strategic emphasis on generating value to shareholders through focusing on core business functions.

"We are committed to working hard in order to provide long-term value for our shareholders as we remain focused on improving our business and creating profitable investment opportunities for shareholders," he noted.

UDC president and chief executive Ibrahim Al Othman said 2016 saw the execution of the first phase of its five-year business plan.

"This was achieved through the conclusion of a series of agreements to develop in The Pearl, attracting more residents and retailers and promote investment opportunities. This shows that The Pearl-Qatar constitutes an integrated investment product for investors who are seeking to increase their returns and diversify their portfolios," stated Al Othman.

The Qatari developer had sold two plots of land for the development of residential towers in Viva Bahriya and completed the sale transaction of The Pearl Tower 2.

"The residential leasing volume witnessed an increase of eight per cent, while volume of residential sales in 2016 increased by 81 per cent, compared to 2015. The volume of leased retail properties during 2016 also increased by 32 per cent compared to last year," he noted.

On the future outlook, Al Othman said: "There is no doubt that the outcome of relentless work done by UDC in 2016, will reflect on its projects and investments during 2017, where we look forward to continuing the development of Al Mutahidah Towers, with construction works already launched in 2016, as well as developing the infrastructure and 10 villas in Giardino Village, in addition to a school and hospital projects."

Also this year, UDC will particularly concentrate on retail operations and vital utilities in Qanat Quartier, which is increasingly being recognised as a distinct destination of The Pearl.-TradeArabia News Service