Barwa Real Estate Group, one of the leading real estate and investment companies in Qatar and the region, announced its financial results for the financial year ended 31 December 2014. The group's results showed a net profit of QR 2,778 million, with QR 7.14 profit per share for the year 2014, compared to QR 1,375 million and QR 3.53 profit per share for the year 2013, showing 102% increase.
The Board of Directors of Barwa Real Estate Group proposed a cash dividend of QR 2.20 per share (22% of the share value), to be put forward during the Ordinary General Assembly Meeting which is scheduled for 29 March 2015.
The financial results show positive improvement on the financial position of the group resulted from reducing total commitments by QR 19,829 billion, to reach QR 12,984 million, as well as increasing the shareholders ownership rights in the group by QR 1,948 billion to reach QR 15,759 million on 31 Dec 2014. The financial results show improvement in total operating revenue compared to the year 2013, which is represented in the increased rental revenue which is worth QR 131 million, equivalent to 12%, and increased consultancy & other services revenue which is worth QR 44 million, equivalent to 11%. The group, on the other hand, reduced general and administrative costs by QR 95 million, equivalent to 22% and reduced financing costs by QR 342 million which is equivalent to 31%.
H.E. Mr. Salah Bin Ghanem Al Ali, Chairman of Barwa Real Estate Group, pointed out that the powerful results of the group financial position were accomplished by the continuous efforts of the Board of Directors to utilize the group’s assets whether by developing, operating or selling those assets, which are the core activities of Barwa as a real estate investment company. On the development side, Barwa Real Estate was able to complete phase 1 of Barwa Al Baraha (workers accommodation). The group almost completed Al Khor Shell project; in addition to announcing a number of new projects including Madinat Al Mowatir, Mostawdaat and Alaateda projects. On the operating side, the group focused on improving the performance of its subsidiaries including Qatar Real Estate Investment Company, Qatar project Management and Waseef Property Management Services. They also focused on improving the performance of real estate projects owned by the group such as Barwa Al Sadd, Barwa Village and Masaken. As for investment & divestment, the group was successful in making a number of distinctive transactions during 2014, most important of which were, selling Mesaimeer land, selling the education city and medical city land and selling some assets to Qatari Diar/ Lebreqa Real Estate, which resulted a full restructuring of the financial position of the group. The group could also strengthen the asset base through the purchasing Arcapita shares in Lusail Golf Development Company, a transaction signed on December 2014. While the transaction papers were completed during January 2015. Lusail Golf Development Company owns a land in Lusail that extends over 3.6 million square meters. This will help strengthen the ability of the group to develop projects in the future and will widen its land bank.
H.E. Mr. Al Ali confirmed that the group is now working on drafting its new strategy. H.E. also stressed that Barwa Board of Directors is keen to involve the shareholders in forming its coming steps and supporting its future plans of developing profitable projects which translate Barwa strategy of sustainable growth and increases shareholders returns.