Barwa Real Estate Group, one of the leading real estate and investment companies in Qatar, announced yesterday its financial results for the financial year ended 31 December 2011. The Group's results showed a net profit of QR 1,285 Million for the year 2011, as compared to QR 1,411 Million for the year 2010, a decrease of 8.9%. It is worth mentioning that the group's 2010 profits were exceptional due to the acquisition of Barwa Al Khor and its related gains.
The positive financial results reflect the Group's newly adopted strategy, which puts particular emphasis on increasing cash revenues and sustainable growth. As a result the Group succeeded in significantly reducing its costs and expenses and sustaining the growth of its operating income.
The Group's earnings per share lied at QR 3.22 per share for the year 2011 as compared to QR 4.04 per share for the year 2010. Maintaining a high earning per share was mainly due to the increase in revenues such as the increase in gains from the sale of properties, from QR 159 Million in 2010 to QR 556 Million in 2011, an increase of 249%, and an increase in gain from the sale of subsidiaries by QR 404 Million in 2011. In addition to an increase in operating revenues and gains such as rental income which increased by QR 260 Million, an increase of 59% compared to the previous year, due to the start of some of the Group's projects such as Barwa Village and Barwa Al Sadd Project.
In 2011, The Group signed a sales agreement with Qatar Petroleum whereby it sold its Barwa Financial District Project, resulting in a gain that was partially realized during the 4th quarter of 2011.
The Group's balance sheet shows a significant growth in projects under development, as a result of the company’s commitment towards completing and launching projects and generating sustainable cash revenues that support the targeted growth. The Group also managed to restructure its financial obligations during 2011, which resulted in a decrease in finance costs despite the increase in obligations under Islamic finance contracts as compared to the year ended 31 December 2010.
The Board of Directors proposed a cash dividend of 10% from the outstanding share capital amounting to QR 1 per share.
Hitmi Al-Hitmi, Chairman of the Board of Directors offered his sincere gratitude and appreciation for the support and guidance of His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of the State of Qatar, His Highness Sheikh Tamim Bin Hamad Al Thani, the Heir Apparent and His Excellency Sheikh Hamad Bin Jassim Bin Jabor Al-Thani, Prime Minister and Minister of Foreign Affairs. AL Hitmi Commented: “The growth and achievements of Barwa is founded upon the growth and development of our nation, made possible through our visionary leadership.”
“We are grateful for the support of our employees, customers, partners, and shareholders. They are BARWA’s pillars and foundation through which we can continue to pursue our aspiration to be one of the most successful real estate development and investment companies in the world, with a home in Qatar but a business operating around the globe,” AL Hitmi added.