(MENAFN- The Peninsula)
The Peninsula
Doha: Barwa Real Estate Group, the leading real estate and Investment Company in Qatar and the region, reported QR533m net profit for the period ending on June 30, 2021. The total assets of the Group exceeded the value of QR35bn, and the total equity of the shareholders of the parent company exceeded the value of QR20bn.
As a result of the Group’s success in developing a balanced real estate portfolio that helps to face market fluctuations and despite the effects of the Corona pandemic on the global economy, the Group has succeeded in strengthening rental income and increasing it by 41 percent, which is a large percentage in light of the challenges witnessed by the real estate market and it reflects the size of planning and the effort made at all levels within the Group to promote the sustainable growth of operating revenues.
The company also succeeded in rationalizing its various expenses, which led to a decrease in general and administrative expenses by 34 percent and also a decrease in net financing costs by 8 percent, which contributed to an increase in the net cash income of the Group for the period, and in a way that supports her financial position.
Despite the decrease in the net profit for the period compared to the same period last year by QR53m, which is due to the significant decrease in some non-recurring items such as profits from valuation of investment properties and other income, the increase in operating income and rationalization of expenses have contributed significantly to compensate for this decrease.
Despite the continuing challenges facing the real estate market as a result of the COVID-19 pandemic, the company is determined to develop a balanced real estate portfolio that will help cope with market volatility and support ongoing operating revenues. Development work continues on several new projects that will contribute to the growth of the company’s operating revenues and promote sustainable growth of its shareholder earnings, including: The development work continues for the third phase of the Mawater City Project, which began in August 2019 on 418,000 square meters of land.
During 2020, the Qatar Schools Project Development Agreement - Package I - was signed as the first project to be implemented by the Public-Private Partnership system, which is expected to be completed in 2022. During 2020, also, construction work was launched in the two projects of Madinatuna, which is intended as a residential city for families, and in Baraha Al Janoob, which is a workers’ city. The two projects are located within the geographical border of the municipality of Al-Wakra. The cost of developing the two projects exceeds the value of QR5bn. The two projects will enhance the levels of support for the partnership with the State of Qatar and will be used as part of the organizational plans for the World Cup events. Development work on the two projects is expected to be completed by mid-2022.
The Group is also studying the economic feasibility of many of the development projects put forward by the Public Works Authority under the Public-Private Partnership system, and the participation of the Group in any of these tenders will depend on their economic feasibility and commensurate with the Group’s development strategy. Barwa will also continue in studying its available space lands to determine their optimal use to support the financial position of the Group and contribute to the development of the sustainable revenues. The group continues to study the development potential of its large land holdings spread over various locations, including notably large plots in Lusail and other strategic sites in Qatar.
The Group has always promoted the principle of partnership with the Government of the State of Qatar to develop more real estate projects aimed at meeting the needs of the real estate market and consistent with Qatar’s National Vision 2030 and supporting the company’s sustainable growth strategy and solidifying its position as a leading national real estate development company.
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