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(The Group’s Comments) Barwa Real Estate Net Profit Up 12% to
QR1915 Million in 2018
Profits: amounted to QR 1,915.0 million in 2018, an increase of 12.3%,
compared to QR 1,704.9 million for the previous year, while the
company’s earnings per share reached QR 4.92 compared to QR 4.38
for 2017. As for the profits of the fourth quarter of 2018, they
amounted to QR 827 million, compared to QR 478 million for the
corresponding period of 2017.
The company's profits improved as a
result of the sale of real estate assets at QR 105.1 million,
and construction services that brought in another QR 267.5
million. It should be noted that the results of 2017 did not
include any profits from the previous two items.
Comprehensive income: The total comprehensive income amounted to QR 1,908.3 million by
the end of 2018, where Barwa recorded an impairment loss of QR
9.09 million versus a profit of QR 2.24 million for 2017.
Revenues: Net rental income and financial leasing decreased by 4.38% in 2018
to QR 934.53 million, compared to QR 977.36 million for the
previous year, as well as net revenues of advisory services,
which dropped by about QR 150.2 million. As mentioned above,
profits from sale of properties and services (QR 372.6 million),
and the improvement in the fair value of investments amounting
(QR 54 million), contributed to the growth in profits despite
the decrease in net rental and financing income.
Shareholders’ equity: Amounted to QR 19,305 million by the end of 2018, an increase of
2.0%, compared to the same period of previous year, due to the
increase in retained earnings. Also, Barwa’s return on equity
reached 9.90%, compared to 9.00% for the year 2017.
Dividend distribution: The Board of Directors recommended the distribution of cash
dividends at the rate of 25% of the nominal value of the share
(6.27% dividend yield), i.e. QR 2.50 per share, which is the
same as the dividend distribution of 2017.
Market ratios: The stock is currently traded at a PE multiple of 8.13 times and a
book value multiple of 0.81 times.
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