United Development Company Q.P.S.C. (UDCD) Earnings Call Transcript & Summary

Good day, and welcome to the United Development Company First Quarter 2022 Conference Call. Today's conference is being recorded. At this time, I'd like to hand the conference over to Mr. Maher Omar Naim, Executive Director of Financial Planning. Please go ahead, sir.

Hello. Good afternoon, everybody. I just want to give a brief about UDC performance for the first half of the year 2022. We have achieved revenue of QAR 855 million, while the net profit achieved for the period is QAR 173 million, with an increase of 10% compared to prior period, the first half of the year 2021. And the earning per share increased from QAR 0.038 in the prior period of last year compared to QAR 0.047. So as far as the performance, it is considered an acceptable performance, taking into account usually the second quarter of the year that there not be much a transaction occurring over that period. And UDC is still working on it is development plan as planned. And we are continuously working on our projects. And we have not -- we are not encountering major delay and things as [ beer ] is the plan, where we will be handing and finishing our projects as we plan. So from a net profit point of view, as I stated earlier, it has increased by 10% compared to the first half of the year 2021 where we have achieved QAR 173 million compared to QAR 157 million. I leave the floor to you guys. Should you have any questions, we are here to -- we are ready to answer all your questions.

[Operator Instructions] There are currently no questions. We have a question from [ Hayen Alfa Habi ] from [ Rayami ] Investment.

This is Zohaib Pervez from Al Rayan Investment. My question is regarding the different projects that are ongoing at the moment. Could you give us an update on when will be the completion of these different projects?

We have the school, which is over -- almost 100% completed. And the school will hopefully start it is operation at the start of the school year by mid of August. And we have the Giardino Village gated compound, which is almost completed, and we have -- it is completed, and we have villa living there. We have Floresta Garden gated compound as well. The majority of which -- it's like we have 3 compounds, 2 compounds finished and 1 compound is substantially completed. So also, it will be completed, of course, within the year. And what do we have? We have the [ Ver ] infrastructure upgrade project, which is being worked out. And hopefully, we are targeting that this shall be completed towards the end of the year, latest by beginning of next quarter, first quarter of the year 2023. In addition to our project, which is now the mega project which is being developed now, the Gewan project. As you are aware, the Gewan project is composed of different flats, different products. There are 15 mixed-use building. Hopefully, they will be completed through by the first half of the year 2023. And we have the hotel which we have already started the work on it, and this shall be completed by the first half of -- or by towards the end of the year 2024 as planned. We have the golf club or the golf course. Also, it is being targeted to be completed within the year 2022. From a land point of view, we have done the majority -- the substantial completion of the infrastructure for the land. And lands will be handed over to clients, where the clients will develop their own villas, because we have approximately 50-plus landed lot for developers who bought such land of lots, and they will develop their own villas. So in summary, a majority of projects on hand will be completed by end of the year as far as the plan. In respect to the Gewan Island, we will have up until '23, '24 completion period for the ongoing projects.

Okay. So this Floresta, Giardino Village, you had about 80 villas and 19 apartments in this, correct?

In Giardino, we have 80 villas and 17 apartment in Giardino. And Floresta, we have 115 villa -- gated villas and gated compounds.

And then so this Giardino, this was all sold out and handed over?

Leased, leased. This is for leasing. GV and Floresta, the Giardino Village and Floresta are held for lease.

So these are held for leasing, so...

Yes.

Okay. And my other question is on -- I'm looking at the major operating assets. In your major operating assets, I can't see Al Mutahidah Towers. I thought half of those were being leased.