FEBRUARY 2020 BARWA AL SAAD 1
The information contained herein has been prepared by Barwa Real Estate Company Q.P.S.C. (“Barwa”) relying on information obtained from sources believed to be reliable but Barwa does not guarantee the accuracy or completeness of such information. Except for statements of historical facts, information herein may contain projections or other forward-looking statements regarding future events or future financial performance of Barwa. These forward-looking statements are not guarantees or promises of future performance. The inclusion of such forward-looking statements shall not be regarded as a representation by Barwa, its management or any other person that the objectives or plans of Barwa will be achieved. Actual results and future events could differ materially from those anticipated in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Risks and uncertainties arise from time to-time, and it is impossible to predict these events or how they may affect Barwa or cause its actual results, performance or achievements to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Barwa undertakes no obligation to update or revise any forward-looking statement contained herein, whether as a result of new information, future events or otherwise. Figures are being rounded, and that rounding differences may appear throughout the presentation. 2
Barwa wa At A Glance ce Investm stment nt Rationale ale Qatar r Economy my Financi cial l Track ck Record rd Annexu xure re 3
We are one of the leadi ding real estate develope opers rs headquarte uartere red d in Doha, , Qatar. r. We develop op and manage prope perties s that reflect lect the changing needs ds of the peopl ple living, , working and visi siting the country. y. Our Vision on: To be a reliable Real Estate company, recognized for its strong values, excellence and sustainable returns to its stakeholders. Our Mission ssion: To create better places in an efficient manner for people to live, work and Our expertise tise in developing loping, leasin ing g and enjoy. managing ging our assets, based on our Our Values: ues: • Entrepreneurship unders rstand tandin ing g of the customer, er, • Commitment • Reliability drives ves incrementa remental val alue for or Bar arwa a an and ou our • Teamwork stakeholde lders rs • Integrity 4
Completed 8,129 3.6 mn sq m built-up Leadership in residential units and area under operations affordable housing 37,340 labour rooms Balanced product mix ~ 77% Op. Revenue 2 is Positive Cash Profits 1 resulting in stable since 2014 recurring rentals rental yield QAR 4.5 bn dividend Land Bank of 5.2 mn distributed in last 5 sq m in Qatar, Debt:Equity mix of 1:2 years 85% owned 1 Cash profits = PAT+ Depreciation+ Amortization-Share of associates- FV on Invst Properties-FV of an asset- Misc Income- Property Sales 5 2 Op. Revenue and operating Profit is excluding profit from Property sales 2014: QAR 2930mn, 2015: QAR 2703mn, 2018: QAR 373mn, 2019: QAR 3.3mn
6
• Moving towards mid to high-mid • Affordable housing solution for residential segment in newly families & blue-collared workers developed Lusail city • Commercial Properties including • Barwa selects its product offering offices, shops & warehouses to in alignment with tangible market support industrial development of demand Qatar • 8,129 residential units; 37,340 • Net Debt:Equity Mix at 1:2 labour rooms • Recurring Cash flows • 335,981 sq m of retail & offices • Distributed QAR 4.5 bn as • 445,779 sq m of workshops & dividend (2014-18) warehouses • 3.6 mn sq m Built Up Area under • Recurring Rental Revenue operations comprises ~77% of total • Land Bank 7.7 mn sq m (Qatar 5.2 mn operating revenue sq m; 85% owned) • 90% of operating profits from 7 • Strong brand recognition net recurring rental
• 260,022 022 Sq Sq m m Retail • 68,97 973 3 Sq Sq m Office • 8,129 9 reside dential l • 5.2 Millio lion Sq Sq m m • 445,779 Sq Sq m m • 701 Hotel l Keys units & Villas las Domestic Land Warehous use e & • 37,340 0 labour ur • 4,290 0 Sq Sq m shops Workshops ps rooms • 2.4 Millio lion Sq Sq m m • 3,267 267 Sq Sq m m International l Land proper erty in UK 8
Barwa Outperformed Qatar Residential Rental Index over 2016-2019 110 10.0% 100 100 8.0% 7.8% 90 6.0% # 4.4% 80 4.0% 71.9 70 2.0% *Yield on operating assets is 8.7% as of Q4 FY19 60 0.0% Q2 2016 Q4 2016 Q2 2017 Q4 2017 Q2 2018 Q4 2018 Q2 2019 Q4 2019 KPMG Residential Rental Index Rental Yield Current Mix Forward Mix • Residential assets with labour rooms offers predictable • Foray into Education and Healthcare assets recurring revenue development, delinking from economic cycle • Mixed use property leverages both commercial and • Building premium residential units residential units effectively. • Increasing development in freehold areas like • Warehouse segment complements government thrust Lusail on industrialization Way Forward is to continue to modulate products based on market & stakeholder demand 9 *Yield= Revenue/ Investment Properties (Operating Assets + Properties under development + Land bank) = at FV #Reduction in yield for FY19 is on account of significant increase in value of investment properties, majorly attributable to increase in value of land banks. However, the yield on operating assets is 8.7% as of Q4FY19.
• Proven developer and operator of a range of assets with • Quality control is paramount despite tight cost timely delivery measures • Barwa was able to conclude construction of • Routine quality checks at various stages of project life Madinat Al Mawater phase 1 & phase 2 projects & cycle Barwa Village Extension projects two months ahead of • High quality was ensured despite cost control at schedule Madinat Al Mawater & Barwa Village Extension • Private sector mindset- cost optimization, efficiency are • Understanding of local preferences and effectively the key focus areas built/enhanced private sector capabilities • Barwa attained EPC contracts under • Customised delivery model to support government QAR 2,000 per sqm without compromising on quality vision, a preferred partner for government initiatives for Barwa Village Extension project 10
Barwa 35% Barwa 68% 10% Barwa 6.4% Peer 1 50% 1.4% Peer 1 Peer 1 77% 0.9% 4.6% Peer 2 22% Peer 2 2.7% Peer 2 47% RoE ; RoA * As on 2018 Qatar QE Al Rayan Islamic - Price Barwa Real Estate Co. QE Real Estate 11 * Adusted operating margins= Rental Revenue + finance lease income + Consultancy+ Property sales- Operating expenses
QAR mn 1600 200% 94% 89% 88% 86% 180% 1400 82% ❑ 3.6 mn sq.m BUA # under 1359 160% 1299 1291 1292 1200 operation 1200 140% 1154 1000 1005 120% ❑ Rental assets spread across 977 935 880 800 100% residential, commercial and 80% 600 retail verticals 79% 77% 74% 72% 76% 60% 400 ❑ Operating margin on 40% 200 recurring revenue remains 20% stable at 64% despite 0 0% 2015 2016 2017 2018 2019 challenging macro scenario Recurring Rental Revenue Recurring Rental Op.Profit % of Revenue % of Operating Income ❑ Consistent high occupancy ~77% ~88% in residential Stable Recurring of Op. Revenue Operating Profit Rental Income is from recurring from recurring rentals* rentals 12 * Revenue and operating Profit is excluding profit from Property sales 2014: QAR 2930mn, 2015: QAR 2703mn, 2018: QAR 373mn, 2019: QAR 3.3mn # Built-Up Area
Balance Sheet Strength provides an Opportunity for Leveraged Growth *Recurring Cash Profits have been generated Timely Sale of Properties have adequately consistently, providing sufficient liquidity supported Liquidity 30 1.2 20 20 20 20 25 1.0 19 19 18 18 18 18 20 0.8 841 826 807 15 0.6 0.4 0.3 10 0.4 493 0.3 0.3 0.2 398 398 5 0.2 8 7 5 5 4 0 0.0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Net debt Equity Net Debt: equity Note: * Recurring Cash profits = 13 PAT+ Depreciation+ Amortization-Share of associates- FV on Invst Properties-FV of an asset- Misc Income- Property Sales
Comfor ortab able Debt Maturity Profi file (QAR AR Mn) QAR Millio lion Dec-19 19 2,308 2,175 Debt 9,406 1,705 Cash 1,254 1,105 1,055 1,058 Net Debt 8,151 Total Equity 20,061 Total Assets 31,950 2020 2021 2022 2023 2024 Beyond 2024 Liquid uidity – QAR 3,293 293 mn mn (Dec c 2019) 9) Key Ratio Dec-19 19 QAR 1,509 9 mn mn QAR 529 mn mn QAR 1,254 mn mn Net Debt/ Equity 0.4 Net Debt/ Assets 0.3 Liquidity 3,293 Cash Equivalents Investments Trading Properties 14
Consistency in Cash Profits, Low Leverage has given Consistent Shareholder Returns QAR Mn 61% 57% 57% 8% 973 973 973 8% 856 51% 7% 50% 778 778 6% 584 6% 5% 5% 389 31% 31% 3% 28% 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 QAR 6.3 Bn Cumulative Healthy Dividend Payout Ratio Attractive Dividend Yield dividends declared over 2011-18 15
Recommend
More recommend
