(MENAFN- The Peninsula) The Peninsula
Barwa Real Estate Company's net profit attributable to shareholders of the parent amounted to QR1.22bn for the period ended September 30, 2017, down from QR1.49bn recorded for the same period of 2016. The company's earnings per share edged down to QR3.14 fromQR3.85 during the period.
The decrease in the net profit resulted from the decline in the profits of some of the non-recurring items like revaluation gain from investment properties and other income, in addition to the termination of the finance lease agreements of one of the subsidiaries of the Group, which resulted in collecting QR1.3bn in the first quarter of 2017, the Group stated yesterday.
However, on the operational level, the Group has succeeded to enhance its operating income by increasing its net rental income by QR96m with an increase of 16 percent compared to the same period of the year 2016. The Group's operating income is expected to increase as a result of the signing of an agreement for the lease of the entire Mustawdaat project in Umm Shahrain area for 10 and a half years, starting from October1, 2017 for a total rental value of QR755m.
In addition to that, the group has leased all the showrooms of phase one of Madinat Al Mawater and handed over a Housing Complex to Shell Co. in Al Khor. In addition to many other projects under construction which are expected to be operational in the near future.
The Group's results reflect Barwa's keenness to increase sustainable returns for its shareholders by strengthening the Group's asset base with new operating projects and at the same time improving the efficiency of current operational projects, hence contributing to increased operating revenues. It is also clearly evident that Barwa is keen on enforcing the principle of partnership with the State of Qatar, which reflects positively on its financial position. This partnership is clearly demonstrated in many projects such as Mustawdaat project and Madinat Al Mawater project.
During the nine month period ended in 30 September 2017, Barwa was able to accomplish a number of key achievements including increase in the rental income, signing the contract for the leasing of the entire Mustawdaat project in Umm Shahrain area, start of the operations of Madinat Al- Mawater (Phase 1); and signing the construction contract of Madinat Al- Mawater (Phase 2) with a contract value of QR112.5m and a total built-up area of 35.6 thousand square meters.
Signing the construction contract for warehouses and workshops in Barwa Al-Baraha project with a value of QR139.95m and ongoing construction of Mustawdaat, Dara A and Barwa Village extension projects are among other projects.
The Group maintains a cash balance of QR3.1bn to cover financial needs and support its investment strategy.
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