A view of the Barwa Al Sadd.
Doha: Barwa Real Estate Group, a pioneering real estate and investment company in Qatar, has announced its financial results for the period ended September 30, 2021. The Group posted a net profit attributable to the shareholders of the parent company amounting to QR736m for the third quarter of the year (Q3 2021), an increase of 2 percent compared to the same period last year.
Total assets of the Group reached QR36bn, while the total equity of the parent company’s shareholders exceeded QR20bn.
As a result to the success of the Group in developing a balanced portfolio that helps face market fluctuations and in spite of the effects of the COVID-19 pandemic on the global economy, the Group has succeeded in supporting the rents revenues and increased them by 45 percent, which is a large percentage amid the challenges witnessed by the real estate market. This reflects the volume of planning, and the effort exerted in all levels within the Group in order to enhance the sustainable growth of operating income.
The company also succeeded in reducing its different expenses which led to the decrease of the general and administrative expenses by 6 percent, and reducing net financing costs by 9 percent, which contributed to the increase of the net cash income of the Group for the period which enhances its cash position.
Barwa achieved a 2 percent increase in net profit during the third quarter of the year, compared to the same period last year, in spite of the big decrease in some non-repeated items like profits from the appraisal of investment properties and other income, because of the increase in the revenues and operating profits, and also rationalising the expenses.
Despite the continuous challenges faced by the real estate market due to the pandemic, the company is moving along towards developing a balanced real estate portfolio that helps in facing market fluctuations and enhancing the continuous operating revenues as the development works continuous in several new projects, which will contribute in the growth of the volume of the operating revenues of the Company and enhancing the sustainable growth for its shareholder returns.
The projects include the third stage of Mowater City project whose implementation started in August 2019 on a 418,000 square metre land, and includes 118 exhibitions, Hypermarket, Car service centres, Auto parts sales centre, and exhibition hall for a car agency. It is also considered an extension of the first and second stages of the project.
In 2020, the agreement of developing Qatar schools was signed (first package) as the first project to be implemented with partnership between the public and the private sector. It is expected to be completed in 2022.
Also last year, the construction works were launched in Madinatna project as housing city for families, as well as the Barahat Al Janoub project as a labor housing city in the municipality of Al Wakrah. The two projects, which are valued at QR5bn, will enhance the Group’s partnership with the State of Qatar. The projects, which are expected to be completed in the middle of 2022, will also benefit from with the organisational plans for World Cup events.
The Group is also working on the feasibility study for several development projects proposed by Ashgal, under the public private partnership (PPP) system. Barwa’s participation in any of the tenders depends on its feasibility study, which is appropriate to the development strategy of the Group.
Barwa will continue studying the stock of vacant lands available to determine its best use including the lands available in Lusail City and other strategic locations in Qatar, in order to enhance the financial position of the Group and contribute in developing sustainable revenues. Regarding its international and financial investments, Barwa evaluates regularly the performance of its investments, formulating the proper strategies to enhance its revenues.
The Group is always keen to enhance the PPP principle with the State of Qatar in order to develop real estate projects aimed at fulfilling the real estate market requirements in compliance with Qatar National Vision 2030, and supporting the Company’s sustainable growth strategy and its status as a pioneer national company in the field of real estate development.
