Barwa Real Estate has reported net profit of QR1.21bn and earnings per share of QR0.31 in 2020.

The board has recommended cash dividend of 12.5% or QR0.125 per share.

The total assets of the group amounted to QR33.1bn, and the total equity of the shareholders of the parent company reached QR20.3bn.

Despite the year-on-year decrease in the net profit in 2020, which is due to non-recurring items in nature such as real estate investment appraisal profits, there was an increase in operating income, as rental earnings rose by QR155mn, equivalent to 13% of rental income for the year 2019.

This is despite the impact of the Covid-19 pandemic, which reflects the strength of the group's real estate portfolio and its ability to absorb fluctuations in the real estate market.

In addition, Barwa rationalised its expenditures, which was reflected in a 10% decrease in general and administrative expenses and 11% in financing costs, in addition to a decrease in the ratio of rental expenses to rental income by 9%.

In 2020, Barwa succeeded in signing financing contracts worth QR3.4bn with the aim of refinancing existing credit facilities in a way that contributes to strengthening the Group's cash position during the coming period.

Despite the challenges facing the real estate market as a result of the coronavirus pandemic, the company is moving forward towards developing its real estate portfolio in a balanced manner that helps face market fluctuations and supports continuous operational revenues, which is evidenced by the financial performance of the group that has recently been able to support its real estate portfolio by several new operational projects.

An agreement to develop Qatar Schools project was signed in 2020, and it is the first project to be implemented under the public private partnership (PPP) system in Qatar, and it is expected to be developed by the beginning of 2022.

The construction work began on Madinatna project, which is a residential city for families, in the last quarter of 2020, next to Barahat Al Janoub, which is a residential city for workers, and both projects are located within the geographical scope of Al Wakra municipality.

The value of the construction contract for the two projects amounted to nearly QR5bn and they are expected to contribute to the growth of operating revenues and enhance sustainable growth of shareholder returns. The development work in the two projects will likely be completed by mid-2022.

The group is working on the economic feasibility study of many development projects proposed by Ashghal according to the PPP system. Its participation in any of these tenders will depend on its economic viability, in line with the group’s development strategy.

“Barwa will continue to study its available stock of lands to determine the optimal use of it, in a way that helps support the financial position of the group and contributes to the development of sustainable returns,” it said.