(MENAFN- The Peninsula) The Peninsula
Barwa Real Estate Company has reported a net profit of QR912m for the period ended 30 June 2017, down by abouta 24 percent compared to QR1.2bn reported for the corresponding period last year.
Earnings per share (EPS) of the company amounted to QR2.34 against QR3.09 for same period in 2016.
The decrease in the net profit resulted from the decrease in the profits from few non-recurring items like revaluation gain from investment properties and other income, in addition to the termination of the finance leases of one of the subsidiaries of the Group, which resulted in collecting QR1.3bn in the first quarter of 2017. However, on the operational level, the group has succeeded to enhance its operating income by increasing its net rental income by QR62m with a 15 percent increase compared to the same period of the year 2016. The group has also succeeded to sign leasing contract for Mustawdaat project in full for 10 and a half years, starting from October 1, 2017 and with a total rental value of QR755m.
In addition to that, the group has leased all the showrooms of Phase one of Madinat Al Mawater that will contribute to the increase of the group's operating income.
The financial results of the group reflect Barwa's success of fulfilling its objectives of achieving sustainable growth for its shareholders through supporting its asset database via new operational projects, and at the same time, working on enhancing the operational efficiency of current operating projects. It is also clearly evident that Barwa's keenness on enforcing the principle of partnership with the State of Qatar has a huge positive impact on the financial position of the group.
This partnership is clearly demonstrated in many projects such as Mustawdaat project and Madinat Al Mawater project.
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