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Barwa Announces Its Financial Results For The Year Ended 31 December 2013

Barwa Announces Its Financial Results For The Year Ended 31 December 2013



"Barwa Real Estate Group, one of the leading real estate and investment companies in Qatar and the region, announced yesterday its financial results for the financial year ended 31 December 2013. The group's results showed a net profit of QR 1,370 million, with QR 3.53 profit per share for the year 2013, compared to QR 1,123 million and QR 2.92 profit per share for the year 2012, showing 21% increase.
The financial results show positive improvement on the total revenue with QR 616 million increase, equivalent to 25% increase, compared to the year 2012, as well as increasing both cash and operating revenues. The rental revenue increased by 35% to reach QR 999 million for the year 2013, compared to QR 741 million for the year 2012. The positive financial results reflect the group's strategy, which puts particular emphasis on improving the efficiency of its operations in order to reduce its costs and expenses which is represented in reducing general and administrative costs by 8%. Despite the 25% increase in total revenue and the 35% increase in rental revenue, yet operational costs increased 8% only.
Financial year 2013 witnessed some achievements for Barwa Real Estate, as the group completed many projects and started reaping revenue for some of them, including Barwa City, Barwa Commercial Avenue, North Row property in London and Barwa Al Sadd. The group was able to recover a big amount of money which was previously invested in some projects that faced many difficulties, such as Ajman project, a real estate investment in KSA, which stated provisions for impairment compared to those amounts of money in the last few years, resulting an increase in revenue during the year 2013
The group was keen to identify appropriate investment opportunities and methods to obtain target returns through selling or operating those investments. All of which is achieved without deviating from the group strategy, which aims to maximize the return on shareholders and increase cash flow in a sustainable and continuous manner. Accordingly, the group announced in November 2013 its memorandum of agreement with Qatari Diar which owns 45% from Barwa shares, to sell some of its assets worth QR 20 billion. The agreement will be implemented by 30 June 2014, as part of the group’s plan to restructure its financial debt and reduce liabilities which will be reflected into the group’s financial results. During 2013, the group sold some of its investments in Egypt, in addition to the successful deal done during the fourth quarter of 2013 through selling its shares in Barwa, which was reflected in reducing liabilities around QR 6 billion in comparison to 2012.    
Barwa Real Estate Group is now focusing on the completion of its projects under development, which are expected to run during 2014, such as Barwa Al Baraha, and the truck park, as well as the workers accommodation in Al Khor City. The group is seizing the right investment opportunities which align with its strategy of sustainable growth.
The Board of Directors of Barwa Real Estate proposed a cash dividend of QR 2 per share (20% of the share value), to be put forward during the Ordinary General Assembly Meeting."


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