BARWA Real Estate Group, one of the leading real estate and investment companies in Qatar and the region, has announced its financial results for the financial year ended 31 December 2016. The results have shown a net profit attributable to the equity holders of the parent by QAR 1,605 Million and an EPS of QAR 4.13 during the year, with an increase of QAR 1,251 million representing a 353% increase compared to the year ended 31 December 2015 after eliminating the amount of QAR 2,702 million as exceptional profit resulted from the sale of Measaimeer land in 2015.
The company's consolidated financial results reveal an improvement in the operating revenues of the Group with an amount of QAR 48 million as an increase in the net rental income with a 6% increment compared to 2015 and an increase in the net income from consultancy and other services by 5%. On the expenses side. The Group has decreased the general and administrative expenses by 8% and decrease in the net finance costs by 8% compared to 2015. Also there is an increase in the equity attributable to the equity holders of the parent with the amount of QAR 658 million reaching the balance of QAR 18,229 million as of 31 December 2016.
His Excellency Mr. Salah Bin Ghanem Al Ali, Chairman of the Board of Directors has emphasized that the Board of Directors has taken upon themselves the task of a total restructure of the Group from regulatory, operational, and investing perspectives. This restructuring contributes to the increase of the return on shareholders' equity, and helps prepare the Group to face the numerous challenges facing the real estate market. The Board has also worked in cooperation with the executive management of the group to put in place and initiate, the necessary plans to increase the sustainable return for the company's shareholders, through attaining maximum benefits from the Group assets, whether via developing, operating, or sale of, within the sphere of major activities of Barwa as a real estate development company. This has reflected positively on the financial position of the Group and its financial indicators which allowed us to recommend to the Annual General assembly the proposed suggestion of distributing cash dividends for the year 2016 of 25%, a number considered as the highest dividend distribution throughout the company's history. This is considered as a fulfillment of our promises to our esteemed shareholders and gratitude to their continuous support for the company since its establishment.
His Excellency has also ensured that Barwa is always striving to support its development path towards higher positions through the implementation of profitable projects that contribute to the achievement of the sustainable growth strategy. His Excellency also added that the Board is continually keen on positioning Barwa as one of the developmental pillars of our beloved country Qatar, and to contribute to the World Cup 2022 requirements and achieving Qatar National Vision 2030, supported and sponsored by his Highness Sheikh Tamim Bin Hamad Al Thani, The Emir of the State of Qatar.
On his side, Mr. Salman Al Muhannadi, the Group CEO, also expressed that the
financial year 2016 has witnessed many challenges and difficulties in the local and international real estate market, however with the guidance of our Board of Directors chaired by H.E. Mr. Salah Bin Ghanem Al Ali and also in alignment with Barwa's mission, we have worked hard to increase the shareholders' equity and return in addition to achieving sustainable growth. We have worked to overcome those difficulties through:
- Completing the development of the local projects under construction,
- Completing the master plan and concept design of the other projects in line with the market requirements and starting the development process at the earliest,
- Enhancing the operational efficiency for the current operating projects.
Mr. Al Muhannadi has also insured that the Group succeeded in 2016 to accomplish many achievements, of which;
- Completion of the construction and operation of the two phases of labor camp in Barwa Al Baraha project in addition to the completion of Al Khor project (housing complex for Shell Co. employees)
- Initiating the construction of many projects such as; phase one of Madinat Al Mawater, Mustawdaat Project and Dara A – Lusail Area. Work on these projects is going as per plan, and marketing campaigns will start soon,
- Amendment of the master plan of Barwa Village extension which resulted in an increase in the built up area by 43%,
- Approval of the master plan for each of Barwa Doha project, Dara B-F – Lusail area project and Al Khor Recreation extension project, in addition to Marrakesh land. Details of those projects will be announced at the time of awarding the related construction contracts,
- Finalizing the refinancing of the Group's facilities with a favorable terms with new maturities of up to 9 years. This will support the financial position of the Group and enable us to utilize our cash flow to develop new projects and acquire new investment.