Barwa's earnings surge 154 per cent
Dubai, March 16, 2010
Barwa Real Estate, a leading developer in Qatar, has posted a net profit increase of 154 per cent in 2009, buoyed by an increase in rent revenues, revaluation of properties and the acquisition of an investment firm, it said on Monday.
The group's net profit rose to QR779 million ($214.1 million) from QR306 million in 2008, a company statement said.
Barwa, an affiliate of the country's sovereign wealth fund, did not give a quarterly breakdown of its earnings.
Earnings per share rose QR3.06 riyals up from QR 1.46 in 2008, and the board proposed a dividend of QR2.
'Profits realized through re-appraisal of Barwa properties are a main driver behind the increase in earnings.
'In addition, returns related to rents and services provided by subsidiaries and affiliates as well as the acquisition of the First Investor by Barwa Bank made a robust contribution to Barwa's net profits,' the statement said.
Barwa, which has properties in France, Switzerland and the UK, focuses on retail, office, hospitality and residential property development.
Barwa said it would deliver its large Village project soon as well as Masaken and Saliyah and the first phase of Al Sadd development, which would have a positive impact on its revenue.
It did not give details.
Total assets increased to QR35 billion from 24 billion in 2008, it said.
Qatar, the world's largest exporter of liquefied natural gas, has said it will keep on spending to maintain growth momentum in the small Gulf Arab state, as well as acquiring overseas assets.
Qatar is ensuring its key property firms weather the global crisis, which has hit nearby Dubai hard, by pushing through defensive mergers and using the real estate arm of the sovereign wealth fund to invest in them.
Qatari Diar, the property unit of the fund, will own at least 45 per cent of the new Barwa group, which is to be formed after Barwa's planned takeover of Qatar Real Estate Investments. – Reuters