Barwa Real Estate Group net profit up 6% to QR1.7bn in '17

11/02/2018 06:41 AST

Barwa Real Estate Group has posted a 6% growth in net profit to reach QR1.7bn in 2017, it was announced. The group's real estate portfolio has grown to include 6,639 housing units, 12,706 worker rooms, and 265,000sqm of shops, showrooms, and offices. The major real estate also initiated the construction of its affordable housing project for labourers on Salwa Road, Phase 2 of Madinat AlMawater, and the warehouses and workshops project in Barwa AlBaraha with an overall total construction cost of QR1.6bn.

This is in addition to the ongoing progress on the construction of Barwa Village extension Project, Dara (A) in Lusail and other projects, which, upon completion, will add the following to the group's operational portfolio: 806 housing units, 25,360 rooms for workers, 314,000sqm as rental space for showrooms, warehouses, workshops, offices, and shops.

Other achievements include the leasing of the entire Mustawdaat Project for 10.5 years with a total value of QR755mn, and ongoing work on the master plans and designs for projects, including but not limited to the Dara B-F project in Lusail, Barwa AlDoha project, and Lusail Golf project.

Earnings per share amounted to QR4.38 with an increase of QR100mn. The board recommended the distribution of cash dividends to shareholders by 25%.

The group enhanced operating revenues by increasing its net rental income by QR140mn, an 18% increase compared to 2016 as a result of the increase in occupancy rates of Barwa AlBaraha - Workers Accommodation and the start of operations of several new projects during the year such as Shell's staff housing project and Phase 1 of Madinat AlMawater.

Also, net revenue of consultancy services and other services increased by QR85mn. The improvement in the group's operating revenue was reflected in the total equity attributable to equity holders, which increased by QR695mn, reaching the balance of QR18.9bn as of December 31, 2017. Total assets increased by QR599mn, while the group's liabilities decreased by QR181mn.

Barwa also maintained sufficient cash balances to cover the group's operations and to cope with fluctuations in the finance markets with a balance of QR3.1bn.

Barwa Real Estate Group chairman Salah bin Ghanim al-Ali said: "The results represent the beginning of reaping the benefits achieved during recent years in which the current and former board members have worked on developing, following up, and supporting new project development plans. "This is in addition to continuing to enhance the operational efficiency for the current operating projects to maximise the benefit of the group's assets as it has a diversified real estate portfolio of properties, including housing units, workers' housing, warehouses, offices, shops, and showrooms."

He added: "Moreover, the group has over 5.5mn sqm of land plots inside Qatar, and the executive management is currently developing its own investment plans to achieve the sustainable growth.

"The board of directors will make every effort to co-operate with the executive management to pursue the developmental path of the group and put Barwa in its real position as the largest developer in the Qatari real estate market."

Group CEO Salman bin Mohamed al-Mohannadi said: "The financial year 2017 witnessed many achievements in spite of the conditions and the obstacles resulting from the siege."

Barwa Real Estate Group's headquarters in Al Saad. The group's real estate portfolio has grown to include 6,639 housing units, 12,706 worker rooms, and 265,000sqm of shops, showrooms, and offices.

Gulf Times