United Real Estate Company (URC) announces revenues of KD 103.5 million and net losses of KD 9 million for financial year ended 31 December 2018

Apr 10 , 2019

Kuwait City by URC | Press Release

United Real Estate Company K.S.C.P (URC), one of the leading real estate developers in the MENA region, announced its financial results for the year 2018, recording a KD 103.5 million in revenues as compared to KD 87 million in 2017, and net loss of KD 9 million in 2018 as compared to net profit of KD 2.2 million for the year end 2017.

The decrease in the company’s profits was due to several factors mainly from decline in properties value inside and outside Kuwait including the United Arab Emirates, in addition to the increase in the annual amortization of BOT investments in Kuwait due to the near end of these investments period.

The total assets of United Real Estate Company increased by 2.39 % to reach KD 617 ​​million, as compared to KD 602 million in 2017. The company recorded a decrease in operating profit from KD 21 million in 2017 to reach KD 9 million during 2018 for the same reasons as the company’s losses in 2018.

URC Chairman

Commenting on the results, Mr. Tariq Mohammed AbdulSalam, Chairman of URC, said that despite the announced losses, the company has achieved number of positive and promising achievements for the future, the most important of which is the maintaining same operational performance (before provisions) and the continued growth in the services and construction sectors in line with the company’s recent diversification strategy.

In the same year, the company succeeded in issuing KD 60 million worth of bonds for five years with strong demand from high net worth individuals and institutions, reflecting investor confidence in the strategy put in place by the company.

About URC

United Real Estate Company (URC) is one of the Middle East and North Africa’s leading real estate developers, with consolidated assets of KD 602 million (US$ 2 Billion) as of 31 December 2017. URC was founded in 1973 and 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’s majority shareholder is KIPCO Group, one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 34.5 billion as at 31 December 2017. 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.

Contact Info

Mohammed Al Tawwash

Assistant Vice President – Corporate Communications
United Real Estate Company

T (+965) 2295 3500 Ext. 3672

F (+965) 2244 1003