Barwa Real Estate Company has reported a net profit of QR1.22bn and earnings-per-share of QR3.14 in the first nine months of this year.
The net profitability is, however, down owing to the decrease in the profits of some of the non-recurring items like revaluation gain from investment properties and other income, in addition to the termination of the finance lease agreements of one of the subsidiaries of the group, said its spokesman.
Of the QR1.22bn net profit, its real estate division contributed QR955.29mn, other services QR242.01mn and business services QR134.75mn, according to its financial statement filed with the Qatar Stock Exchange.
On the operational level, the group witnessed a robust 16% year-on-year increase in net rental income to QR694.99mn.
“The group’s operating income is expected to increase as a result of the signing of an agreement for the lease of the entire Mustawdaat project in Umm Shahrain area for 10-and-a-half years, starting from October 1, 2017, for a total rental value of QR755mn,” the spokesman said.
Besides, the group has leased all the showrooms of Phase 1 of Madinat Al-Mawater and handed over a housing complex to Shell Company in Al Khor, he said, adding many other projects, which are under construction, are expected to be operational in the near future.
The group’s results reflect its keenness to increase sustainable returns for its shareholders by strengthening the asset base with new operating projects and at the same time improving the efficiency of current operational projects, hence contributing to increased operating revenues, he said.
During January-September this year, Barwa signed the construction contract of Phase 2 of Madinat Al-Mawater with a total built-up area of 35,607sqm for QR112.5mn. The group also had signed the construction contract for warehouses and workshops in Barwa Al-Baraha project (193,000sqm) for QR139.95mn.
The group’s net consulting and other services income grew about 71% to QR195.54mn in the review period. The company maintained a cash balance of QR3.1bn to cover financial needs and support its investment strategy.