Barwa Real Estate Q3 net profit jumps
Doha, October 23, 2012
Barwa Real Estate, Qatar's largest listed property developer, said third quarter net profit more than doubled, as gains booked on the fair value of investments offset higher operating and finance costs.
Barwa, which is eyeing asset sales worth $4.4 billion to pay down loans, made a net profit of 185.4 million riyals ($50.92 million) in the third quarter, compared with 80.8 million riyals in the same period of 2011, it said in a bourse filing on Tuesday.
The profit was boosted by net fair value gain taken on investment properties, which soared to 125.3 million riyals from just 20.4 million riyals in the prior year period.
This offset increase in operating expenses which nearly doubled to 119.8 million riyals in the quarter and finance costs that grew three times to 125 million.
Barwa is 45-percent owned by Qatari Diar, the property arm of the country's sovereign wealth fund, the Qatar Investment Authority. It has properties in France, Switzerland and the United Kingdom and focuses on retail, office, hospitality and residential developments.
Total revenue and gains for the quarter was 527 million riyals compared with 359.7 million riyals a year ago, the company's statement showed.
Earlier this month, Barwa said it plans to sell assets worth 16 billion riyals ($4.4 billion) in Qatar and Egypt to pay down loans. The assets being sold include land in Qatar as well as the Barwa New Cairo project in Egypt and will be reflected in fourth-quarter results.
The company also laid off laid off about 90 employees in a restructuring move last year.
In May, Barwa's chief executive said it planned to launch an 18 billion riyal mixed-use Golf City project ahead of the 2022 World Cup soccer tournament.
Located within the planned coastal Lusail City north of the capital Doha, the project will include 4,000 residential units and a golf course, and is expected to be ready by 2018, group CEO Abdulla al-Subaie said. It will be financed through a combination of off-plan sales and subdevelopment. - Reuters