United Projects for Aviation Services Company (UPAC), a commercial real estate and facilities management company, today announced Q2 2024 results, reporting net profit of KD 664,000, or 1.77 fils per share, on revenue of KD 2.18 million, down 11.3% compared to the same period last year.
Net profit for the first half of the year was KD 1.3 million, up by 104.7%, or 3.4 fils per share، compared with the same period last year. The company’s revenue was KD 4.4 million, down by 12.6%, vs. first half of 2023. The decline was primarily driven by a reduction in operations at Kuwait International Airport, given UPAC’s Terminal 4 contract ended in February 2024.
Nadia Akil, Chief Executive Officer at UPAC, said: “UPAC’s second quarter results are in-line with our expectations, reflecting steady progress in our projected performance targets. I’m pleased to add that on July 18, UPAC signed a 17-year agreement with the Touristic Enterprises Company under which UPAC will operate the Messila Beach Site Project (Plage-2). It is an exciting new project that enables us to grow and diversify our portfolio and expand presence in the entertainment and facilities management sectors.”
Messila Beach, one of Kuwait’s prime family entertainment destinations, was developed by TEC developed as part of its role in spearheading growth of Kuwait’s tourism sector. The project spans more than 70,000 SQM at a prime location on Messila Beach, and aims to be a major draw for Kuwaitis and visitors. UPAC will handle leasing, facility management, and project operations.
In May, UPAC celebrated the official opening of Reem Mall in Abu Dhabi in the presence of His Excellency Sheikh Nahyan bin Mubarak Al Nahyan, UAE Minister of Tolerance and Coexistence. UPAC is a co-investor in the $1.3 billion mega-mall, which is home to the largest snow park in the region, and the region’s first, fully integrated omnichannel retail ecosystem with digital, e-commerce, and logistics capabilities.
As of the end of June, Reem Mall had 173 units in operation and 74% of Gross Leasable Area (GLA) committed.
In Kuwait, UPAC manages operations of Kuwait International Airport’s Terminal 1 (T1) airport mall, parking, and related facilities, as well as real estate and parking facilities at the Sheikh Sa’ad Airport Terminal (T3).
Akil said: “We are committed to delivering value for our shareholders while ensuring we continue to provide solid business performance for our customers. We anticipate steady growth this year.”
About UPAC
Established in 2000, publicly listed on Boursa Kuwait, and headquartered in Kuwait, UPAC is a leading commercial real estate and facilities management company with a specialization in Build Operate Transfer (BOT) initiatives. Its services cover project management and consultancy, real estate development as well as property and facilities management. UPAC manages over 24,000 sqm of commercial space at the Kuwait International Airport (Terminal 1), Sheikh Saad Terminal. UPAC is part of the Kuwaiti-led consortium developing Abu Dhabi’s Reem Mall, a $1.3 billion project spread over 270,000 sqm. For more information, please visit the website: www.upac.com.kw
