Barwa Real Estate Group reported a QR724mn net profit for the 9-month period that ended on September 30, the company announced on Tuesday.
Earnings per share amounted to QR0.19, while assets amounted to QR32bn with total equity attributable to shareholders of the parent company amounting QR19.8bn.
Despite the decrease in net profit compared to the same period last year, this was due to non-recurring items in nature, such as impairment losses. The company, however, succeeded in enhancing its continuous operating income, as net rental income increased by 15%, in addition to the decrease in general and administrative expenses by 12%, as well as a decrease in net financing costs, which contributed to the increase in the group's net cash income for the period.
During the period ending on September 30, 2020, the group signed financing contracts worth QR2.725bn aiming to refinance existing credit facilities to strengthen the group's cash position during the coming period.
Despite the challenges facing the real estate market due to Covid-19, the company works towards developing a balanced real estate portfolio, which helps face market fluctuations and supports continuous operational revenues. The group has recently succeeded in strengthening its real estate portfolio with many new operational projects, such as the Mukaynis Compound - Affordable Residential City.
This project is in partnership with the government of Qatar, aiming to support government efforts to improve workers’ accommodations and meet the needs of the local market for workers housing in line with the Qatar National Vision 2030 and Qatar’s preparations to host the 2022 FIFA World Cup.
The project is located on Salwa Road and offers 3,170 residential units with 25,360 rooms, in addition to retails units, hypermarket, and mosques, as well as a security centre, government service centre, and parking lot for cars and buses. Barwa Real Estate started leasing activities for phase one, through its subsidiary Waseef Asset & Facility Management in July 2019; it also started leasing activities for Phase 2.
The second phase of the Barwa Al Baraha project offers 561 stores with an area of 300sq m each, and 118 workshops with an area of 144sq m each. The current occupancy rate of the project is 91% for workshops and 71% for warehouses.
For the second phase of the Al Khor Sports Facilities, the project includes 516 apartments with a total built up area of 53,639sq m, in addition to a hypermarket and a multi-purpose hall. Construction work was completed at the end of the year 2019 and the project was rented out during in 2020. The current occupancy rate of the project is 68.41%.
The Dara (A) project is the first phase of the Dara project located in Lusail city. It covers a land area of 16,412sq m and the total built up area is 54,630sq m, and the project offers 271 apartments of various sizes. The company has started sales for the project units.
Barwa will continue developing its real estate portfolio through developing upcoming projects, such as the Phase 3 of Madinat Mawater, in which implementation began on August 1, 2019, being developed on a land of 340,000sq m, offering 118 used car showrooms, hypermarket, car service centres, a centre for selling car parts, and a showroom for a car dealership. This is considered an extension of the first and second phases of the project.
During this period, a Public-Private Partnership (PPP) agreement was signed to develop Qatar schools – Package one, with expected completion by the year 2022.
The group is currently working on completing the necessary procedures for implementing two projects in Al Wakrah city. One of the two projects will be workers accommodation, while the other project will be an integrated residential city for families with limited income.
The group is also working on the economic feasibility study of various developmental projects proposed by the Public Works Authority (Ashghal), according to the PPP model. The group’s participation in any of these tenders will depend on its economic viability and its compatibility with the group’s developmental strategy.
Barwa will continue to study its land bank to determine the optimal use of its vacant lands to help support the financial position of the group and contribute to the development of sustainable revenues.
Moreover, the group is keen to strengthen its partnership with the government of Qatar to develop real estate projects that address the needs of nationals and residents, contribute to achieving Qatar National Vision 2030, and support the preparations of the 2022 FIFA World Cup, as per Barwa’s commitments as a leading national real estate developer.
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