- Net profit attributable to the shareholders of the parent amounted to QAR 1,222 Million.
- Increase of net rental income by 16% .
- Signing the construction contract for warehouses and workshops as part of Barwa AlBaraha project.
- Ongoing progress in the construction of Dara A, Barwa Village extension and phase two of Madinat AlMawater.
- Maintaining a cash balance of QR 3.1 Billion to implement the Group's investment strategy.
Doha – October 2017
Barwa Real Estate Company, one of the leading real estate and investment companies in Qatar and the region has announced its financial results for the period ended 30 September 2017. The results showed a net profit attributable to the shareholders of the parent amounting to QAR 1,222 Million, and earnings per share amounted to QAR 3.14 compared to net profit amounting to QAR 1,498 Million and earnings per share that amounted to QAR 3.85 for the same period of 2016. The decrease in the net profit, compared to the same period last year, resulted from the decrease in the profits of some of the non-recurring items like revaluation gain from investment properties and other income, in addition to the termination of the finance lease agreements of one of the subsidiaries of the Group, which resulted in collecting QAR 1.3 Billion in the first quarter of 2017. However, on the operational level, the Group has succeeded to enhance its operating income by increasing its net rental income by QAR 96 million with an increase of 16% compared to the same period of the year 2016. The Group's operating income is expected to increase as a result of the signing of an agreement for the lease of the entire Mustawdaat project in Umm Shahrain area for 10 and a half years, starting from 1st October 2017 for a total rental value of QAR 755 Million. In addition to that, the group has leased all the showrooms of phase one of Madinat Al Mawater and handed over a Housing Complex to Shell Co. in AlKhor. In addition to many other projects under construction which are expected to be operational in the near future.
The Group's results reflect Barwa's keenness to increase sustainable returns for its shareholders by strengthening the Group's asset base with new operating projects and at the same time improving the efficiency of current operational projects, hence contributing to increased operating revenues. It is also clearly evident that Barwa is keen on enforcing the principle of partnership with the State of Qatar, which reflects positively on its financial position. This partnership is clearly demonstrated in many projects such as Mustawdaat project and Madinat Al Mawater project.
During the nine month period ended in 30 September 2017, Barwa was able to accomplish a number of key achievements including:
- Increase in the rental income.
- Signing the contract for the leasing of the entire Mustawdaat project in Umm Shahrain area.
- Start of the operations of Madinat Al- Mawater (Phase 1).
- Signing the construction contract of Madinat Al- Mawater (Phase 2) with a contract value of QAR 112.5 million and a total built-up area of 35.6 thousand square meters.
- Signing the construction contract for warehouses and workshops in Barwa Al-Baraha project with a value of QAR 139.95 million and a total built-up area of 193 thousand square meters.
- Ongoing progress in the construction of Mustawdaat, Dara A and Barwa Village extension projects.
- Maintaining a cash balance of QR 3.1 Billion to cover financial needs and support the investment strategy of the Group.