United Real Estate Company (URC), one of Kuwait’s leading real estate development companies, has  achieved a net profit of KD764,500 ($2.52 million) for the first quarter, down 34 per cent over the same period last year.

Founded in 1973 and listed on the Kuwait Stock Exchange in 1984, URC is majority owned by Kipco Group, one of the region's largest holding companies with significant ownership interests in over 60 companies operating across 24 countries.

It currently has consolidated assets of KD602 million ($2 billion).

Announcing the results for the first three months, URC said the 34 per cent plunge in net profit was due to several factors including an increase in property operating costs, jump in finance costs besides a drop in other income revenues and an increase in impairment of other debt balances alongside a spurt in share from subsidiaries.

The Kuwait developer also registered an operating profit of KD3.5 million, while its total assets stood at KD602 million with an increase of 3.9 per cent compared to KD579 million for the samer period last year.

The company maintained an operating revenue of KD20.7 million, as compared to the operating revenues for the same period in 2017, it added.

As of April 19, the Kuwait firm had successfully issued a KD60 million bond with a five-year tenure, with Kamco Investment Company acting as the sole manager and arranger for the debt securities issuance.

The company primarily operates through a number of operating subsidiaries and investments across the Mena region. The company's core business is real estate development and ancillary operations.

Commenting on the results, Acting CEO Ahmad Kasem said: "Despite the external challenges and the recent decrease in net profit of 34 per cent as compared to last year’s results, URC continues to demonstrate the flexibility and consistency of its business model by developing innovative projects that create value and achieve long-term sustainability in all areas."

URC has a diversified portfolio of assets that include retail complexes, hotels, residential properties and high-rise office buildings, stated Kasem.

URC’s operations extend to construction and contracting, facility management, and project management, he added.
 
The company's portfolio of assets and businesses are geographically spread across a number of countries through several assets including Marina World, Marina Hotel, and Kipco Tower in Kuwait, Salalah Gardens Mall & Residences in Oman, Abdali Mall in Jordan, Raouche View 1090 in Lebanon, Avaris and Aswar Residences in Egypt, and Assoufid in Morocco.

“Our recent issuance attracted strong demand from major local investors. This in itself demonstrates URC’s dynamic standing in the wider market and reflects high credibility and investor trust in its diversified offerings,” noted Kasem.

On project levels, the top official said URC continued to achieve new milestones, especially with the launch of Hessah Towers at one of its largest regional developments - Hessah Al Mubarak District.

"Our portfolio of assets and service offerings are indicative of a forward looking approach that demonstrates new prospects and lucrative gains for our shareholders. We are confident that future results will reflect positively on URC objectives," he added.-TradeArabia News Service