Mubasher: United Real Estate Company (URC) on Monday reported a 34% year-on-year drop in profits to KWD 764,500 ($2.5 million) for the first three months of 2018 on higher property operating costs among other reasons.

The Kuwaiti property firm logged an operating profit of KWD 3.5 million in the period between January and March, from a year ago, while its operating revenues stood at KWD 20.7 million.

URC attributed its profit fall to an increase in property operating costs and finance costs added to lower other income revenues. An increase in impairment of other debt balances and a rise in share from subsidiaries also contributed to the lower profits, the company said in a statement.

Despite the 34% profit fall, URC acting CEO Ahmad Kasem said that his company has continued “to demonstrate the flexibility and consistency of its business model by developing innovative projects that create value and achieve long-term sustainability in all areas.” 

The Boursa Kuwait-listed property firm’s total assets amounted to KWD 602 million by the end of Q1-18, up 3.9% from KWD 579 million in the corresponding period of 2017.

On 19 April, URC succeeded in issuing bonds worth KWD 60 million with a five-year tenure. KAMCO Investment Company acted as the sole manager and arranger for the debt issue.

Commenting on the bonds, Kasem said that the issue attracted strong demand from major local investors, noting that this emphasises URC’s “dynamic standing in the wider market and reflects high credibility and investor trust in its diversified offerings.”