United Real Estate Company Achieves 23.5% Increase in Net Profit Recording KD 4.2 million in 2023

Mar 26 , 2024

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 year ended 31 December 2023.

The company achieved an increase in net profit attributable to the equity holders of the parent company, reaching KD 4.2 million in 2023 compared to KD 3.4 million in 2022, representing a 23.5% increase. Gross profit also increased to KD 27.2 million compared to KD 22.9 million in 2022, an increase of 18%.

URC stated that the financial data showed a significant growth in operational performance during 2023. Operating profits recorded an increase of KD 25.3 million in 2023 compared to a loss of KD 17.3 million in 2022, representing an increase of 245.9%.

Revenue from the core business segments of Rental and Hospitality increased by 35.7% in 2023 compared to 2022. The rental segment saw revenue growth of 45%, and the Hospitality segment saw revenue growth of 20%.

Commenting on the financial results, Mr. Mazen Issam Hawwa, URC Vice Chairman and Group Chief Executive Officer, said: "2023 has been a positive year as we succeeded in improving our financial position and made tangible progress in our strategic priorities. The company was able to achieve many accomplishments as part of its business plan, including the opening of the Waldorf Astoria Cairo Hotel and the completion of the sale of Medius in Egypt."

Mr. Mazen added, "The company's good financial results demonstrate the adaptability of its business model to challenges and confirm the management's commitment to creating added value for shareholders over the long term and achieving the best returns. These results also provide a solid foundation for achieving stronger performance in the future."

URC believes that its ongoing efforts are key to its success, enhancing its resilience and enabling it to capitalize on available opportunities in the markets. These efforts contribute to solidifying its position and achieving further sustainable growth in the long term.