PANDEMIC EFFECT: Page 2 Credit Suisse pain isn’t likely to end with fi rst-quarter woes Thursday, April 22, 2021 Ramadan 10, 1442 AH AVIATION SPECIAL: Page 8 Curbing carbon footprint GULF TIMES through sustainable BUSINESS aviation fuels Qatar participates in 113th Meeting of GCC Financial UDC posts QR57mn net profi t and Economic Co-operation Committee on QR351mn revenues for Q1 nited Development Company (UDC) re- U ported a net profit of QR57mn on revenues of QR351mn for the first quarter of 2021. The net profit attributable to the equity shareholders stood at QR46mn with basic earnings per share of QR0.013. UDC chairman Turki bin Mo- hamed al-Khater said UDC “is moving steadily” in 2021 to achieve good revenues and profits “despite the challeng- ing real estate market.” UDC chairman Turki bin UDC president and CEO Ibrahim He said, “We will endeav- Mohamed al-Khater. Jassim al-Othman. our to continue delivering across all our projects while land, which will pave the way witnessed an increase of 19% remaining committed to our for the launch of a variety of compared to the first quarter overall development plans unique residential and com- of 2020, in addition to the re- that will ensure UDC’s sus- mercial properties.” UDC duction in expenses. tainable growth and the crea- president and CEO Ibrahim This demonstrates the com- tion of new opportunities and Jassim al-Othman, who is pany’s efficiency in managing revenue sources over the long also a member of the board, and diversifying the source term. said the profits achieved in of revenues and reducing ex- “We hope the State of Qatar the first quarter of 2021 are penses even with the current will overcome this pandemic considered good in terms of difficult circumstances. and will regain safety and sta- their close resemblance to “It is the combination of in- bility for life to take its normal the profits of the first quarter novative properties placed in a course. of 2020, where the coronavi- first-class community setting HE the Minister of Finance Ali Sherif al-Emadi participated in the 113th Meeting of the GCC Financial and Economic Co-operation In this context, we are rus pandemic had no signifi- is what distinguishes UDC’s Committee, which was held online yesterday. During the meeting, the committee discussed ways to further enhance economic and looking forward to the fu- cant negative impact on the projects and gives the company financial co-operation among GCC members and increase returns. The committee also discussed the General Secretariat of the GCC ture as we continue devel- real estate market at the time. the flexibility it needs to navi- States’ report on the resolutions implemented at its previous meeting to enhance the confidence in the GCC states’ economies, and oping new projects at The He said, “Further, revenues gate its business in these diffi- achieve financial sustainability. Pearl-Qatar and Gewan Is- for the first quarter of 2021 cult times.” To Page 7 Qatar’s total housing stock at 304,715 units in Baladna chalks out plans to first quarter: ValuStrat By Pratap John said. Villa rents continue to reduce Business Editor at a slower pace compared to strengthen core business; apartment rents, which have expe- rienced rapid drops over the last The total housing stock in Qatar year. The median monthly asking stood at 304,715 units with the rent for apartments was QR6,290, addition of 1,700 apartments and declining 1.9% quarterly and 6% villas in the first quarter (Q1) of this annually. Three-bedroom apart- eyes geographical expansion year, researcher ValuStrat has said ments experienced the highest in a report. quarterly falls in rent of up to 5.3%. By Santhosh V Perumal Apartment supply consisted of West Bay, Fereej Bin Mahmoud Business Reporter 1,650 units coming from project and Al Mansoura experienced the handovers in Lusail (Fox Hills highest quarterly drops in rents and Marina District), The Pearl, varying 3.5% to 5%. atar’s most successful greenfi eld Al Dafna, Mirqab Al Jadeed and The median monthly asking dairy farm Baladna has chalked Fereej Abdul Aziz. rent for villas was QR10,460, which Qout an ambitious strategy for this Contracts of residential build- fell by 1.2% QoQ and 3.9% YoY. year to not only strengthen its core busi- ings awarded during the first quar- Three-bedroom villas experi- ness by entering new product lines but ter in Lusail Waterfront, Marina enced the highest quarterly drop also explore geographical expansion, es- and Fox Hills, were estimated to in rents of up to 2.8%. pecially South East Asia and beyond. add 450 units by the end of 2022. Villas in compounds in Al “Baladna intends to continue explor- Some 6,300 units are currently Aziziya and Ain Khaled experi- ing opportunities to enter new product in the pipeline for the remaining enced the highest QoQ rental falls categories, if identifi ed by our teams to quarters of 2021, ValuStrat said. by an estimated 3.3%. be profi table within our capabilities” its The median transacted ticket The first quarter 2021 ValuStrat chief executive Malcolm Jordan elabo- size for residential houses was Price Index (VPI)-Residential, rated on the strategy for 2021 in the com- QR2.7mn, increased by 3.4% quar- displayed overall 6.2% annual and pany’s annual report that was presented terly and 6.8% annually, ValuStrat 1.5% quarterly declines in capital at the recently held annual general as- noted. Transactional volumes for values. Villa and freehold apart- sembly meeting of shareholders. houses declined 3.3% quarterly, ment prices saw quarterly price The general assembly approved the but were 52.8% higher when com- drops of 1.3% and 2.4%, respective- board proposal to distribute dividends at pared to the same period last year. ly. Amongst freehold apartments, a rate of 5.3% of the nominal value of the A view of the Baladna plant. Qatar’s most successful greenfield dairy farm has chalked out an ambitious strategy for this year to not only Amongst all areas, Umm Garn The Pearl witnessed the sharpest share for the year ended 2020. strengthen its core business by entering new product lines but also explore geographical expansion, especially South East Asia and beyond. had the highest volume of transac- decline in values. Highlighting that the company intends tions for residential houses and Amongst villas, the highest to continue to focus on its successful core revenue growth, a key priority remained port business as well as transferring our future as Qatar’s most successful dairy Fereej Al Amir had the highest quarterly depreciation of 5.6% in business, he said the strategy will be to driving margin growth via extracting ef- experience and knowledge to business farm; Baladna chairman Moutaz al- ticket size. Some 68 transactions capital values was experienced in grow Baladna’s dairy and juice portfolio fi ciency gains across the value chain. The models in South East Asia and beyond,” Khayyat said this translated into “sig- were recorded for residential Al Wakrah cluster. Five locations in a value accretive manner through in- investments in additional farming and Jordan said. nifi cant” improvement in the yield per buildings, as Old Airport and (Umm Salal Ali, Old Airport, The novation and experience. Pointing out manufacturing capacity continued to de- He said 2021 is expected to be an “ex- cow, enhanced product portfolio through Umm Ghuwailina had the highest Pearl, West Bay Lagoon and Ain that its product portfolio had grown by liver material benefi ts. citing” year during which Baladna would the development of more stock keeping number of transactions. Khaled) saw a marginal QoQ 40.7% in 2020; he said Baladna achieved The company reported that herd yield continue preparations to meet the “ex- units or SKUs and led to growth momen- During the first two months change of less than a percent “signifi cant” growth in terms of sales improved by 14.9% whilst manufacturing tensive demand” dynamics of the 2022 tum through key initiatives in marketing, of 2021, the volume and value of in capital values. The remaining volume, revenue and net profi t. conversion costs reduced by 13%. FIFA World Cup in Qatar, which is ex- modern and traditional trade. annual transactions in The Pearl areas experienced quarterly falls The identifi ed markets with high profi t He said Baladna has plans to repli- pected to result in a “signifi cant” in- As of end-2020, Baladna maintains an and West Bay Lagoon fell 6.8% and of between 0.5% and 2.5%. Gross margins such as processed cheese, whip- cate it successful model elsewhere in the crease in Qatar’s population in the lead extremely strong asset base; this is pri- 11.7% respectively. yields for residential units aver- ping/cooking cream and long life juice world as it eyes expansion geographically. up to and during the event. marily funded by equity, which is also The median monthly asking aged at an overall 5.4%, adjusted were the key success factors of its revenue “We continue to assess opportunities Continuing its focus on over the course strong, as evidenced by the net debt-to- rent for residential units dropped by 6.5% for apartments and 4.8% growth (of 68% year-on-year) and in- for geographical expansion – leveraging of 2020 to achieve signifi cant top- and total-capital employed ratio of 34.5%, 1.8% QoQ and 5.7% YoY, ValuStrat for villas, the review said. crease in margins in 2020. In addition to our existing asset base to develop an ex- bottom-line increases and secure its according to him.