OCTOBER 2019 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 nce Investment estment Ration ionale le Qatar ar Econo onomy my Financi ancial al Track ck Recor ord d Annex nexure ure 3
We are one e of the leadi ding ng real estate ate devel elop opers ers headq dquartere uartered d in Doha, a, Qatar. ar. We devel elop op and manag age e propert erties es that at refle lect ct the changi nging ng needs ds of the e people le living ing, , work rking ing and visiting siting the count untry. ry. Our r Visio ion: n: To be the leading and reliable real estate company recognised for its strong values, innovation, excellence and providing sustainable returns to its stakeholders. Our r Missio ion: n: To create and operate better living environment in an efficient manner for Our expert rtise ise in devel elopin ping, g, leasin ing g and people to live, work and enjoy. managing ging our assets, ts, based ed on our Our r Values: lues: • Entrepreneurship under erstandi tanding ng of t the customer mer, • Optimization • Socio-economic consciousness drives ves increm emental ental value e for Barwa a and our • Integrity stakeholder eholders • Reliability 4
Completed 7,342 3.5 mn sq m built-up Leadership in residential units and area under operations affordable housing 37,340 labour rooms Balanced product mix ~ 80% Op. Revenue 2 is 11% CAGR Cash resulting in stable Profits 1 (2014-18) recurring rentals rental yield QAR 4 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 2Op. Revenue and operating Profit is excluding profit from Property sales 2014: QAR 2930mn, 2015: QAR 2703mn, 2018: QAR 105mn, It includes profit of QAR 267 mn for construction services on Salwa Labor
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• 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 • 7,342 residential units; 37,340 • Net Debt:Equity Mix at 1:2 labour rooms • Recurring Cash flows • 324,751 sq m of retail & offices • Distributed QR 4 bn • 445,779 sq m of workshops & dividend (2014-18) warehouses • 3.5 mn sq m Built Up Area under • Recurring Rental Revenue operations comprises ~80% of total • Land Bank 7.6 mn sq m (Qatar 5.2 mn operating revenue sq m; 85% owned) • 90% of operating profits from 7 • Strong brand recognition recurring rental
• 252,05 059 9 Sq Sq m m Retail • 68,97 973 Sq Sq m Office • 7,342 residentia ntial • 5.2 Million ion Sq Sq m m • 445,779 Sq Sq m m • 232 Hotel Keys units s & Villas Domestic stic Land Warehou ouse e & • 37,340 0 labour • 4,290 90 Sq Sq m shops Workshop shops rooms ms • 2.4 Million ion Sq Sq m m • 3,267 67 Sq Sq m m Interna nation tional Land property ty in UK 8
Barwa Outperformed Qatar Residential Rental Index over 2016-2018 100 8% 8% Stable yield 76 Declining Rental Index Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 KPMG Residential Rental Index Rental Yield Current Mix Forward Mix • Residential assets with labour rooms offers • Foray into Education and Healthcare assets predictable 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
• 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% 10% Barwa 68% Barwa 6.4% 1.4% Peer 1 50% Peer 1 Peer 1 77% 0.9% 4.6% Peer 2 Peer 2 22% 2.7% Peer 2 47% RoE ; RoA * As on 2018 Oct/16 Feb/17 Jun/17 Oct/17 Feb/18 Jun/18 Oct/18 Feb/19 Jun/19 Oct/19 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 95% ❑ 3.5 mn sq.m BUA # under 89% 88% 86% 82% operation 82% 77% 76% 72% ❑ Rental assets spread across 74% residential, commercial and 1566 1517 1359 1291 1293 1230 1201 retail verticals 1005 997 978 ❑ Rental income grew by 21% from 2016 to 2018 period 2014 2015 2016 2017 2018 despite sanctions in June 2017 Recurring Rental Revenue Recurring Rental Op.Profit % of Operating Income % of Revenue ❑ Consistent high occupancy ~80% >90% 7% CAGR in residential of Op. Revenue Operating Profit from FY2016-18 is from from recurring for Rental recurring rentals Income rentals* 12 *Revenue and operating Profit is excluding profit from Property sales 2014: QAR 2930mn, 2015: QAR 2703mn, 2018: QAR 105mn, It includes profit of QAR 267mn for construction services on Salwa Labor # Built-Up Area
Balance Sheet Strength provides an Opportunity for Leveraged Growth Cash Profits have increased by CAGR 11% Timely Sale of Properties have adequately providing sufficient Liquidity supported Liquidity QAR mn QAR bn Net debt Equity Net Debt: Equity 19 19 19 19 18 18 16 16 18 18 0.4 0.4 876 826 821 789 0.3 0.3 568 0.2 7 6 5 5 4 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Note: * Cash profits = 13 PAT+ Depreciation+ Amortization-Share of associates- FV on Invst Properties-FV of an asset- Misc Income- Property Sales
Com omfo fortable table Debt t Matu turity rity Prof ofil ile e (QAR Mn) QAR R Million ion Sep-19 19 2,256 2,011 Debt 9,568 1,854 Cash 1,432 1,430 Net Debt 8,136 998 734 Total Equity 19,361 Total Assets 31,466 2020 2021 2022 2023 2024 Beyond 2024 Liquidity ty – QAR 3,837 mn mn (Sep 2019) 9) Key Ratio tio Sep-19 19 QAR 1,432 mn mn QAR 1,661 61 mn mn QAR 744 mn mn Net Debt/ Equity 0.4 Net Debt/ Assets 0.3 Liquidity 3,837 Cash Equivalents Investments Trading Properties 14
Consistency in Cash Profits, Low Leverage has given Consistent Shareholder Returns QAR Mn 8% 8% 61% 964 961 57% 57% 7% 848 841 51% 6% 50% 6% 5% 5% 31% 31% 28% 419 3% 389 389 321 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 5.1 Bn Cumulative Healthy Dividend Payout Ratio Attractive Dividend Yield dividends declared over 2011-18 15
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