United Real Estate Company (URC), a leading real estate developer and investor in Kuwait, has reported a KD5.7 million ($18.6 million) operating profit for 2021 compared to an operating loss of KD3.2 million ($10.4 million) the previous year.

Announcing its earnings for the financial year ended December 31, URC reported KD 84.9 million in total revenue in 2021, compared to KD 96.3 million the year before due to the limited offerings of government projects which affected Company’s contracting business.

The company’s net losses saw a considerable decline of around 70% from KD16.3 million in 2020 to KD4.9 million in 2021 due to URC’s focus on efficiency in its operations during the year and improvements in its operational performance from commercial activities.

Supported by the worldwide gradual return to normalcy, URC witnessed significant recovery in its business activities after a year of health and safety restrictions that limited URC’s operations, locally and regionally. As a result, URC reported an operating profit of KD5.7 million in 2021, compared to an operating loss of KD3.2 million in 2020.

Commenting on the results, Vice Chairman and Group CEO Mazen Issam Hawwa said: "In alignment with URC’s business strategy, 2021 was the year the Company returns to operational profitability and continuous innovation for its ongoing developments in Kuwait and abroad."

"Additionally, our operations recovered steadily, reflecting increased rental income from shopping centers, improvement in hospitality income, and significant improvement in revenues from real estate services," he noted.

Hawwa said: "URC’s performance saw resilience through its business efficiency initiatives and proactive debt management and enhanced operations, which contributed to such results. URC also aligned its human capital with its corporate goals by onboarding new talents while empowering current ones."

In 2021, URC significantly progressed with its projects under development for Hessah District, a mixed-use urban cluster that combines leisure, shopping, offices, and residences in Kuwait, with a total project valued at KD250 million.

In Hessah District, the Company launched the main works of its second luxury residential development, Byout Hessah, by awarding Alghanim International General Trading & Contracting Co. at the cost of KD 16.7 million and set for completion in 2023.

Additionally, URC appointed Ahmadiah Contracting and Trading Company as Main Contractor for the Commercial District, a bustling epicenter in Hessah District with a contract value of KD 42.6 million with components including retail, F&B, offices, clinics and serviced apartments.

Demand for URC’s award-winning residences at Hessah District project increased in 2021, selling over 64% of residential units at Hessah Towers, which expects completion in Q4 2022, and 31% at Byout Hessah by the end of 31 December 2021.

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