Barwa Real Estate Group has reported more than doubling of its net profit to QR2.78bn in 2014 mainly on the back of stronger operating earnings from profit on sale of properties as well as better cost management.
The company has recommended 22% cash dividend, which will have to be approved by shareholders at the annual general assembly scheduled on March 29.
Net rental and finance lease income grew 9% to QR1.27bn and net consultancy income by 11% to QR119.04mn.
Profit on sale of properties grew many fold to QR2.93bn compared to mere QR954,000 in the previous year.
“The powerful results of the group financial position were accomplished by the continuous efforts to utilise 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,” Salah bin Ghanem al-Ali, chairman of Barwa Real Estate Group said.
However, profit on disposal of subsidiaries plunged 96% to QR8.83mn, that of associates by 97% to QR10.29mn and impairment losses more than tripled to QR380.62mn, even as gain on sale of available-for-sale financial assets grew 14-fold to QR25.6mn.
General and administrative expenses were brought down by 22% to QR334.6mn and finance costs by 31% to QR748.31mn.
Total assets were valued at QR28.91bn, which include QR10.96bn in investment properties, advances worth QR7.14bn for projects and investments, QR3.69bn of trading properties, QR2.19bn of finance lease receivables and QR1.78bn in cash and cash equivalents.
On the development side, al-Ali said the group almost completed Al Khor Shell project; in addition to unveiling several new projects as 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.
Total equity stood at QR15.92bn on a capital base of QR3.89bn and earnings-per-share was QR7.14 at the end of December 31, 2014.
