Barwa Real Estate Group, the leading real estate and investment company in Qatar and the region, announced its financial results for the year ended 31 December 2021.
The financial results showed achieving a net profit attributable to the shareholders of the parent company of QR 1,114 million. The total assets of the Group reached the value of QR 37.5 billion, and the total equity of the shareholders of the parent company reached the value of QR 20.9 billion.
Considering the financial performance of Barwa Real Estate Group and its future development plans, the Board of Directors recommended to the Shareholders’ General Assembly a cash dividend of 17.5% at the rate of QR 0.175 per share.
As a result of the Group’s success in developing a balanced real estate portfolio that helped to cope with market fluctuations. Despite the effects of the Covid-19 pandemic, the Group has succeeded in boosting its rental income, which increased by 41%, reflecting the size of planning and effort exerted to enhance the sustainable growth in operating income of the Group.
Although the net profit for the year 2021 compared to 2020 decreased by QR 96 million, as a result of the decrease in non-recurring items such as valuation gains of investment properties and other income, which decreased by QR 609 million. However, the Company has succeeded to cover most of this decrease by increasing the operating profits from rental activities, service income, profits from sale of properties, construction income and other operating activities which increased by QR 409 million.
The company succeeded in cost-cutting its operating profits and reducing its general and administrative expenses by 2% contributing to a significant increase in the company’s operating cash profits for the year 2021 compared to the year 2020. The aforementioned facts supported the cash and bank balances of the Group to reach QR 1.4 billion as of December 31st 2021 which will assist the Group to cover its liabilities and to achieve its future development plans.
Despite the challenges facing the real estate market as a result of the Covid-19 pandemic, the company is resolutely moving towards developing a balanced real estate portfolio that helps in coping with the market fluctuations and supports sustainable operating revenues. The development work continues in many new projects, which will contribute to the growth of the company's operating revenues and the sustainable growth of the returns of its shareholders, including:
- The third phase of Madinat Mawater project, on a land of 418,000 square meters, offering 118 showrooms, hypermarkets, car service centers, a center for selling auto parts, and a showroom for a car dealership. This phase is considered an extension of the first and second phases of the project.
- During the year 2020, an agreement was signed to develop the Qatar Schools- Package 1, as the first project to be implemented under the PPP system. The project is expected to be completed in 2022.
- During the year 2020, construction works were launched in each of the Madinatna project, which is designated as a residential city for families, as well as in the Barahat Al-Janoub project, which is a residential city for workers. Both projects amongst the geographical area of Al Wakra municipality and the cost of developing these two projects has exceeded five billion Qatari Riyals. The two projects will enhance the levels of support for the partnership with the State of Qatar, as the two projects will be used as part of the organizational plans for the World Cup events. Development of the two projects is expected to be completed in mid-2022.
- The Group is also working on the economic feasibility study of many development projects proposed by the Public Works Authority under the PPP system, and the Group's participation in any of these tenders will depend on its economic viability and in line with the Group's development strategy.
- Barwa will also continue to study its available land bank to determine the optimal use of it in Lusail area and other strategic sites in Qatar, in order to support the financial position of the Group and contribute to the development of sustainable revenues.
- With regard to its international and financial investments, Barwa regularly evaluates its performance and formulates the suitable strategies to enhance its investment revenues, which was evident during the year by selling the Group’s plot in Riyadh.
- The Group is always keen to promote the principle of partnership with the Government of the State of Qatar to develop more real estate projects that aim at meeting the needs of the real estate market and consistent with Qatar's National Vision 2030, as well as supporting the company's sustainable growth strategy and solidifying its position as a leading national real estate development company.
On the development of Group’s performance and promoting the governance system the Group has successfully obtained three international accreditation certificates for its compliance with all requirements of the International Organization for Standardization "ISO". This confirms the Group's ability to develop and implement an integrated management system that conforms to international specifications and standards in the areas of "Quality, Environment, Health and Occupational Safety."
Additionally, during 2021 Barwa Real Estate signed cooperation agreement with Huawei to support the technology integration with Barwa’s future projects, which contributes to the implementation of sustainable energies and smart cities.
Be virtue of Barwa’s concern to strengthen the communication with the real estate market and the customers, the Group has achieved a remarkable participation in Cityscape Doha exhibition, whereas it offered many promising projects under consideration in order to explore the opinions of the customers and identifying the market’s needs.