| 2026 | 2025 | % | |
|---|---|---|---|
| Net profit - nine months | 4,164,450 | 4,906,993 | -15.13% |
| EPS (fils) - nine months | 3.01 | 3.71 | -18.87% |
| Operating revenue - nine months | 75,453,721 | 75,085,337 | 0.49% |
| Operating profit - nine months | 19,610,484 | 17,933,814 | 9.35% |
| Net profit - third quarter | 1,051,701 | 480,926 | 118.68% |
| EPS (fils) - third quarter | 0.74 | 0.35 | 111.43% |
| Operating revenue - third quarter | 25,979,806 | 26,037,164 | -0.22% |
| Operating profit - third quarter | 6,191,043 | 5,754,204 | 7.59% |
| Total assets | 833,832,140 | 683,511,428 | 21.99% |
| Total liabilities | 620,013,898 | 473,786,242 | 30.86% |
| Equity attributable to parent's owners | 207,966,469 | 201,664,001 | 3.13% |
United Real Estate Group entered into a lease arrangement with the Ministry of Finance during the current period, obtaining the right to develop, operate and manage the Waterfront Project - Phase 3 (Souk Sharq) in Sharq, Kuwait City, commencing on 15 June 2026, according to the interim financial statements attached to a disclosure the company filed on 5 November 2026. The arrangement grants the Group a contractual right of use over the property for 15 years following a one-year grace period.
Management assessed the arrangement against IFRIC 12 and concluded that the grantor does not control or regulate the services, recipients and pricing to the extent that interpretation requires. It is therefore accounted for as a lease under IFRS 16, with the right-of-use asset classified as investment property under IAS 40. The asset was recognised within investment properties together with a corresponding lease liability, measured at the present value of the remaining lease payments discounted at an incremental borrowing rate of 4.75% per annum.
Additions to investment properties during the period amounted to KD 137,473,753, taking their carrying amount to KD 514,824,884 at 30 September 2026, compared with KD 387,673,831 at 31 December 2025 and KD 380,181,456 at 30 September 2025. Non-current lease liabilities rose to KD 148,559,687 from KD 14,473,387 at 30 September 2025, and current lease liabilities to KD 7,678,746 from KD 1,022,754. Capital commitments related to ongoing investment property projects, expected to be completed during the year ending 31 December 2027, stood at KD 47,273,459, compared with KD 33,023 at 31 December 2025 and KD 65,311 at 30 September 2025.
Net profit attributable to the parent company's shareholders fell 15.13% to KD 4,164,450 in the first nine months of 2026, from KD 4,906,993 a year earlier, while earnings per share were 3.01 fils against 3.71 fils, down 18.87%. The company attributed the decline mainly to lower profits from associates, despite an improvement in operating profit and a decrease in net finance costs. The share of results of associates was a loss of KD 499,558, against a profit of KD 3,547,337.
Total operating revenue rose 0.49% to KD 75,453,721 from KD 75,085,337, and net operating profit rose 9.35% to KD 19,610,484 from KD 17,933,814. Gross profit was KD 25,682,748 against KD 24,567,556, while net finance costs fell to KD 14,740,765 from KD 16,153,419. Profit for the period was KD 3,702,284 against KD 4,919,206.
In the third quarter, net profit attributable to the parent company's shareholders rose 118.68% to KD 1,051,701 from KD 480,926, with earnings per share of 0.74 fils against 0.35 fils, up 111.43%. Total operating revenue slipped 0.22% to KD 25,979,806 from KD 26,037,164, while net operating profit rose 7.59% to KD 6,191,043 from KD 5,754,204.
Nine-month revenue comprised contracting and services revenue of KD 32,098,793 against KD 34,785,727, rental income of KD 23,869,378 against KD 22,746,705, hospitality income of KD 14,345,033 against KD 14,114,525, other operating revenue of KD 4,221,590 against KD 3,333,123, and sale of inventory properties of KD 918,927 against KD 105,257.
By segment, rental operations posted results of KD 1,663,343 against KD 616,117, hospitality operations KD 531,488 against KD 1,619,696, and real estate services KD 2,604,055 against KD 2,307,599. Real estate development and property trading recorded a loss of KD 1,510,629 against a profit of KD 1,084,773, and contracting a loss of KD 531,768 against KD 348,367.
Total assets rose 21.99% to KD 833,832,140 from KD 683,511,428 at 30 September 2025, and total liabilities rose 30.86% to KD 620,013,898 from KD 473,786,242. Current assets were KD 98,253,952 against KD 100,611,660, down 2.34%, and current liabilities KD 97,161,447 against KD 91,998,492, up 5.61%. Equity attributable to the parent company's shareholders rose 3.13% to KD 207,966,469 from KD 201,664,001.
Interest-bearing loans and borrowings stood at KD 276,786,607 against KD 281,015,039, and the company said the Group complied with all applicable covenants. Bonds total KD 80,000,000, split between KD 54,600,000 at a fixed 7% per annum and KD 25,400,000 at a variable rate of 3% over the Central Bank of Kuwait discount rate, all due on 28 March 2028. Investment properties with a carrying value of KD 257,715,924 are mortgaged as security for certain term loan facilities.
Net cash from operating activities was KD 17,893,780 against KD 22,681,142, while cash and cash equivalents at 30 September 2026 stood at KD 11,111,136 against KD 8,289,865.
The notes also describe legal proceedings over Built-Operate-Transfer properties developed on land granted by the Ministry of Finance for an initial 25 years, later extended by 10 years. When the extended term expired, the ministry declined to renew and began proceedings seeking vacant possession and additional rental amounts, while the Group filed counterclaims seeking renewal. The cases remain before the Court of Cassation and the Group continues to operate the properties. Over the nine months it recorded revenue of KD 2,503,030 and operating costs of KD 1,789,750 from them, and management, on the advice of legal counsel, believes no additional adjustment to carrying amounts is required.
In the claims relating to the sale of shares in Manazel United for Real Estate Investment Company S.A.E., management recorded a provisional loss of KD 743,802 for the potential loss of equity interest in the company. The dispute stems from a 16 April 2014 agreement with the Aga family, under which the buyer did not settle the agreed consideration. Between 2016 and 2018 the buyer obtained final judgments confirming the validity of contracts for the sale of approximately 45% of Manazel's shares; the Group challenged them before the Court of Cassation and they remain pending. On 18 July 2020 the Criminal Court issued a final judgment in the Group's favour in case No. 2915/2020, upheld by the Egyptian Court of Cassation on 11 August 2022, finding that the buyer had obtained the earlier judgments on the basis of forged documents. Management does not expect the matter to have a material adverse effect on the Group's financial position or results of operations.
Contingent liabilities for bank and other guarantees and other matters in the ordinary course of business were KD 93,865,581, against KD 64,010,375 at 31 December 2025 and KD 63,289,463 at 30 September 2025, and no material liabilities are expected to arise from them.
The annual general meeting held on 6 May 2026 approved a 3% bonus share distribution from treasury shares, under which 41,013,233 shares were distributed with no increase in share capital or in the number of issued shares, and the transfer of KD 2,582,767 from the voluntary reserve to retained earnings. Treasury shares then stood at 22,366,913 shares, or 1.564% of issued shares. The period's results included no distributions or change in capital.
Total revenue from related-party dealings was KD 5,775,541 and total expenditure KD 3,476,549. The notes state that the Group has not experienced any material disruption to its core operations from the geopolitical escalation in the region and that management has identified no impairment indicators for investment properties and other non-financial assets, though future adverse developments may change key valuation assumptions.
The unaudited interim financial statements carry an unqualified auditor's opinion, and were approved by the board at its meeting on Thursday, 5 November 2026. The company will hold its analyst and investor conference on Tuesday, 10 November 2026 at 1:30 p.m. through a live-streamed group conference call, with participation instructions available at [email protected]. The company said the information has no effect on its financial position.
