Barwa Real Estate 2016 net profit jumps 353% to QR1.6bn

08/02/2017 07:47 AST

rwa Real Estate Group has posted a net profit of QR1.6bn in 2016, up 353% on the previous year, the company announced yesterday.

Barwa's consolidated financial results "reveal" an improvement in the operating revenues of the group by QR48mn amid an increase in the net rental income (6% compared to 2015) and net income from consultancy and other services (by 5%).

Barwa said it saw an 8% decrease in the general and administrative expenses as well as in the net finance costs last year compared to 2015.

Equity attributable to the shareholders increased by QR658mn to QR18.2bn in 2016, the company said.

Barwa Real Estate Group chairman Salah bin Ghanem al-Ali said the board of directors has taken the task of a total restructuring of the group from regulatory, operational, and investing perspectives.

"This restructuring contributes to an increase in the return on shareholders' equity, and helps prepare the group to face the numerous challenges facing the real estate market." The board has also worked in cooperation with the executive management to "put in place and initiate" necessary plans to increase sustainable returns for the company's shareholders by obtaining maximum benefits through group assets.

"This has reflected positively on the financial position of the group and its financial indicators, which allowed us to recommend to the Annual General assembly the distribution of 25% cash dividends for 2016, a number considered the highest in terms of dividend distribution throughout the company's history," al-Ali said.

He said Barwa was always striving to support development "through the implementation of profitable projects that contribute to the achievement of a sustainable growth strategy." "The board is continually keen on positioning Barwa as one of the developmental pillars of Qatar, and to contribute to the World Cup 2022 requirements and achieving the Qatar National Vision 2030, supported and sponsored by HH the Emir, Sheikh Tamim bin Hamad al-Thani." Barwa Group CEO Salman al-Muhannadi said 2016 "witnessed many challenges and difficulties" in the local and international real estate markets.

However, he said, with the "guidance of our board of directors chaired by HE Salah bin Ghanem al-Ali and also in alignment with Barwa's mission, we have worked hard to increase shareholders' equity and return in addition to achieving sustainable growth."

Al-Muhannadi said, "We have worked to overcome those difficulties through completion of local projects under construction, the master plan and concept design of other projects in line with the market requirements and starting the development process at the earliest. We have also enhanced the operational efficiency for the current operating projects."

He said Barwa "succeeded in 2016 to accomplish many achievements." They include the completion of (construction and operation) of the two phases of the labour camp in Barwa Al Baraha project in addition to the Al Khor project (housing complex for Shell employees). Barwa also initiated the construction of many projects such as phase one of Madinat Al Mawater, Mustawdaat Project and Dara A - Lusail Area.

The work on these projects was going as per plan, and marketing campaigns would start soon, he said. The amendment of the master plan of Barwa Village extension resulted in an increase in the builtup area by 43%.

Gulf Times