- A proposal to distribute a cash dividend of 20 % to the shareholders achieving a dividend yield of 6.5%
- Achieving a Net profit attributable to the shareholders of the parent company with an amount QR 1,503 Million.
- Achieving a total recurring operating income of QR 1,556 Million.
- Reaching a total assets value of QR 32 Billion with an increase of QR 1.6 Billion compared to 31 December 2018.
- The total shareholders' equity of the parent company reached the value of QR 19.9 Billion.
- Begin leasing activities at Mukaynis Compound project, as well as Al Baraha Workshops & Storages project.
- Development work begins in the Phase Three of Madinat Al Mawater project.
- Maintaining a cash balance of QR 1.25 Billion.
Doha - March 18, 2019:
Barwa Real Estate Group, one of the leading real estate and investment companies in Qatar and the region, announced its results for the financial year ended 31 December 2019.
The results showed a net profit attributable to the shareholders of the parent company of QR 1,503 Million and earnings per share amounted to QR 0.39.
The Board of Directors of Barwa Real Estate Company proposed to the General Assembly the distribution of a cash dividend of 20% (QR 0.20 per share).
Despite the challenges faced the real estate market during the year 2019, Barwa Real Estate Group has worked hard to accommodate these challenges and reduce their impact as much as possible. Barwa was keen to support its sustainable income as the Group has achieved recurring operating revenues amounted to QAR 1,556 million, mostly came from lease income of the Group's projects. Barwa also has succeeded to decrease the general and administrative expenses with an amount of QAR 21 million equivalent to 8% compared to 2018.
On the other side, the net profit has been decreased compared to last year as a result of a decrease in the non-recurring profits such as the sale of properties, gain on debt restructure in addition to the adoption of International Financial Reporting Standard 16.
The total assets of the group reached QR 32 Billion showing an increase of QR 1.6 Billion compared to the total assets as at 31 December 2018. The Equity attributable to the shareholders of the parent reached to the value of QR 19.9 Billion. The Group maintained a cash balance of QR 1.25 Billion.
Barwa has succeeded in supporting its operating revenues by continuing to develop its real estate portfolio with many new projects as leasing activities have started during the year 2019 in many of the newly developed projects such as:
One of Barwa Real Estate projects, which is located on Salwa Road, and aims to create an integrated residential city for workers. The project extends over a land with a total area of 995 thousand square meters, and its constructed area of 731 thousand square meters, at a development cost of QR 1.6 billion.
The project offers 3,170 housing units containing 25,360 rooms in addition to shops and mosques. The land adjacent to the project, with an area of 184,000 square meters, has been allocated for the construction of parking lots for cars and buses, a hypermarket, a security center and government services. Barwa Real Estate started the leasing activities at the project through its subsidiary Al-Waseef Asset Management during July 2019. The occupancy rate in the first phase of the project reached 84%, equivalent to 29% of the total project to date.
The project is expected to be fully completed, including the second and third phase, during the second quarter of the year 2020. This project is one of the fruits of cooperation between Barwa Real Estate Company and the government of the State of Qatar in order to support the efforts made by the government to improve the conditions of workers housing and meet the needs of the local market for workers housing in line with the goals of the Qatar vision 2030 and Qatar's preparations to host Qatar 2022 World Cup.
- Al-Baraha Project - Workshops and Storages:
It is the second phase of Barwa Al Baraha project, which provides 561 storages with an area of 300 square meters each, and 118 workshops with an area of 144 square meters each. The total area built in the project is about 187 thousand square meters, in addition to developing the infrastructure and all necessary services for the project.
The importance of this project comes in providing suitable spaces for workshops and storages for small and medium businesses. The project also provides mechanical and electrical workshops to meet the needs of the market. The construction work has been completed in this project in September 2019 and the rental rate is currently 97% of the workshops and 58% of the storages to date.
The Group has also completed the development of many other projects during the current year, including:
It is the first phase of the Dara project. The project is located in Lusail City on a land with an area of 16 thousand square meters, with a total construction area of 41 thousand square meters. Dara A includes 271 apartments of various sizes, and construction work was completed during the year. Options are being studied to achieve the highest possible return on the project, whether by selling or leasing.
- The Second Phase of the Al Khor Workers Sports Complex:
This stage was established with the aim of expanding the workers sports facilities, on a land area of 70 thousand square meters. The project consists of 516 apartments. The project consists of 516 apartments with a total built area of 54 thousand square meters. The company succeeded in completing the construction work for the project during the year on November 20, 2019 and the company celebrated the achievement of 3.2 million working hours without accidents in the project and it is planned to start operating and leasing the project in the first quarter 2020.
In addition to the above, the company has completed receiving the land located in the Lusail area, formerly known as Lusail Golf, which extends over a land area of 3.5 million square meters. It is a distinct addition to the group's available land bank, which will give the group a good advantage in developing new projects in the future.
The company also started building car service centers on the first of August 2019 as a first part of the third phase of Madinat Mawater project, which is an extension of the first and second phases. This stage will be implemented on a land area of 418 thousand square meters, to provide 118 used car showrooms, a hypermarket, a center for car services, a car parts sales center and a showroom for one of the car dealers. The company is currently studying the market to determine the appropriate date to start in the second part of this phase.
During the past year, Barwa was keen to further support its partnership with the government as the company participated in the tender of the first package for developing and operating 8 schools in Qatar offered by the Public Works Authority "Ashghal" to develop them according to the model of the partnership between the public and private sectors (PPP), and also participated in bidding for housing for workers as part of the FIFA World Cup 2022.
Barwa will continue to study its available land bank to determine optimal use in order to support the financial position of the group and contribute to the development of sustainable returns to its shareholders. Barwa is also keen on enhancing the principle of partnership with the government of the State of Qatar to develop real estate development projects that contribute to meeting the needs of citizens and residents and contribute to achieving Qatar National Vision 2030, and fulfilling the needs to organise the FIFA World Cup 2022, in fulfillment of Barwa's role being one of the largest real estate developers in Qatar.