United Real Estate Company Achieves Exceptional Performance with Operational Agility in 2023

May 12 , 2024

United Real Estate Company (URC), held its Ordinary Annual General Assembly Meeting (AGM) for the financial year ended 31 December 2023 at the Company’s headquarters at KIPCO Tower in Sharq. The AGM quorum was 74.299%.

The General Assembly approved all items on the agenda, including the report of the Board of Directors and the report of the external auditor. It also reviewed the most important milestones achieved by URC during the fiscal year ended 31 December 2023.

Emphasizing the company's vision, Sheikha Bibi Al Sabah, Chairperson of URC, stated: “As our company marks its 50th anniversary, our vision continues to maximize value for our shareholders. This involves navigating the dynamic landscape of both local and global markets, making prudent decisions that cater to the changing needs of our customers, which also align with our future aspirations.”

In his speech at the AGM, Mr. Mazen Hawwa, URC Vice-Chairman and Group Chief Executive Officer, said: “The financial results in 2023 underscore URC’s continuous growth in profitability, solidifying our leading position in attaining our strategic objectives and improving the quality of our assets to generate sustainable value for all stakeholders, including shareholders and customers alike.”

Despite the challenging economic conditions marked by the rise in interest rates in 2023, the company achieved an increase in net profit 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%. Furthermore, 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%.

The main business segments, such as rental and hospitality services, also contributed significantly to achieving positive results. Revenue from these core business segments increased by 35.7% in 2023 compared to 2022. The rental segment saw a revenue growth of 45%, and the Hospitality segment saw a revenue growth of 20%.

Mr. Hawwa further highlighted that the company's operational momentum continued in the local and foreign markets in which it operates in accordance with its strategic plan and the established timelines set in 2023.

Locally, the sales of residential units in the "Hessah District" project exceeded 91%. Construction has been largely completed for "Hessah Towers" within the "Hessah District" project and finishing works are currently being completed to hand over the residential units in the first half of 2024. As for "Byout Hessah", despite construction setbacks due to the necessary approvals and licenses, the project has achieved an 83% completion rate. In reference to the Commercial District within the project, completion has reached 44%, and the construction of the restaurants and Retail area at "Hessah Plaza" is approaching its final stages.

In addition, Mr. Hawwa mentioned that the year 2023 witnessed the completion sale of "Medius" project in Egypt by our associate company, which had a significant impact on URC’s liquidity and financial position.

2023 also witnessed the inauguration of the Waldorf Astoria Cairo Heliopolis hotel, one of the luxury hotel brands owned by Hilton, which is the first of its kind in Egypt and the African continent. This was achieved through Gulf-Egypt for Hotels & Tourism, a subsidiary of URC.

In conclusion, Mr. Hawwa, on behalf of the Board of Directors, extended his gratitude and appreciation to all shareholders for their unwavering trust, and to the dedicated employees for their steadfast commitment. He further acknowledged the invaluable support and cooperation extended by all the regulatory and supervisory authorities in offering guidance throughout. Finally, Mr. Hawwa expressed his sincere appreciation to all esteemed customers for their continued loyalty, reaffirming the company's steadfast commitment to delivering unparalleled real estate projects and value.