Barwa Real Estate Company has recorded a QR1.49bn net profit in the first nine months of 2016,  a 72% increase compared to the same period in 2015, according to Group CEO Salman bin Mohamed al-Mohannadi.
The 2016 nine-month profit figure excludes the “exceptional” profits made in the same period resulting from the sale of a QR2.7bn plot of land in Mesaimeer, al-Mohannadi told reporters during a press conference yesterday.
In the third quarter of the year, al-Mohannadi said Barwa recorded a net profit of QR297mn, a 136% increase from the QR126mn over the same period in 2015.
He also stressed that Barwa had reduced net financing cost by 16% compared to the same period last year. Available cash balance of QR2.23bn is “sufficient to cover the group’s operations and to face volatility in the financial markets,” he said.
Aside from increased rental income by 7% “in spite of the current real estate market conditions,” al-Mohannadi said the completion of the refinancing of all existing financing liabilities for new periods as part of the group’s strategy aims to strengthen Barwa’s financial position.
Al-Mohannadi said projects under construction include warehouses in Um Shahreen, Madinat Almawater – Phase 1, Dara A in Lusail City, residential projects in Dukhan and Al Khor, in addition to a residential project in Ras Laffan area.
“Additionally, Barwa has recently awarded three construction contracts, including warehouse projects in Umm Shahreen, Madinat Almawater – Phase 1, and Dara A in Lusail City with contract values amounting to QR611.6mn,” he said.
These projects, he added, will feature 917 residential units, 688 labour rooms, 3,014sq m of office and commercial space, and 259,446sq m area of stores and workshops.
Al-Mohannadi said projects “under design” include Barwa Village expansion, Barwa Al Doha project, land at the Grand Hamad Street, stores and workshops projects in Barwa Al Baraha, Dara B-F project in Lusail, and the Al Khor workers recreation expansion.
He said these projects will include 4,723 residential units, 107,376sq m of commercial space, and 191,340 sq m of stores and workshops.
Also, al-Mohannadi said, “The group has a number of local vacant land plots (through ownership or long-term lease) with a total area of 5,001,464sq m located in Lusail, Rawdat Rashid, Mesaimeer, Msheireb, Al Khor, Al Wakrah, and Ras Girtas.
He added: “The group also has vacant land plots outside the state of Qatar with a total area of 2,430,525sq m located in Bahrain, Morocco, Russia, and Cyprus. This also includes the QR659mn, 2.2mn sq m land plot recently purchased in Saudi Arabia.”
Al-Mohannadi said Barwa’s operating asset projects include Barwa Al Sadd, Barwa Village, Masakeen Sailiya and Mesaimeer, Asas Towers in West Bay, labour accommodation projects in Barwa Al Baraha and Barwa Al Khor, Al Khor recreation centre, in addition to other properties in the UK.