Barwa Real Estate Co. · QSE:BRES
Barwa Real Estate — H1 2023 Earnings Presentation
38 slides from Barwa Real Estate's earnings presentation, June 2023
Slide 1: Investor Presentation June 2023
INVESTOR = PRESENT. DAKVVSA OY eI
Slide 2: Disclaimer
ذ 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, informa
Slide 3: Discussion Summary
DISCUSSION SUMMARY • Barwa At A Glance • Investment Rationale • Qatar Economy • Financial Track Record • Annexure
Slide 4: Vision Mission Values
We are one of the leading real estate developers headquartered in Doha, Qatar. We develop and manage properties that reflect the changing needs of the people living, working and visiting the country. Vision To be a reliable Real Estate company, recognized for its strong values, excellence and sustai
Slide 5: Major Contributor to Qatar's Development
BM MAJOR CONTRIBUTOR TO QATAR’S DEVELOPMENT QAR 3.6 bn dividend : ree + 5.5 mn sq. m. built-up distributed in wee area under operations . Leadership in Net Debt* : Equity of 76% affordable housing : MAJOR : ‘ CONTRIBUTOR i Land Bank of 5.4* 10 A 07 it 6: idential ank of 5.4* mn sq. m. perating 14,06
Slide 6: Investment Rationale
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Slide 7: Moving Up the Value Chain / Strong Balance Sheet
MOVING UP THE VALUE CHAIN PRESENCE ACROSS REAL ESTATE • Moving towards mid to high-mid residential segment in ECOSYSTEM newly developed Lusail city • Barwa selects its product offering in alignment with • Affordable housing solution for families & blue- tangible market demand collared workers • Deve
Slide 8: Land Bank
LAND BANK RESIDENTIAL INDUSTRIAL • 5.4 million* sq. m. • More than 448,000 domestic land 14,069 residential sq. m. warehouses & • Around 80,000 sq. m. units & Villas workshops international land COMMERCIAL LABOUR ACCOM. Around 55,000 labour • Around 365,000 sq. m. retail rooms (shopping & restaurant
Slide 9: Rental yield by segment
110.00 10.00% 9.00% 9% 100.00 Retail 8.00% 7.00% 90.00 5.96% 4% 6.00% Offices 4.80% 80.00 4.00% 5.00% 3.43% 4.00% 70.00 3.00% 2.00% 60.00 1.00% 50.00 0.00% Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 %35 %50 Rental yield on total investment properties*** Mixed Use Residential Rental yield on ope
Slide 10: Timeliness, Cost Efficiency, Quality
Timeliness Quality • Quality control is paramount despite tight cost • Proven developer and operator of a range of measures assets with timely delivery • Routine quality checks at various stages of • Barwa was able to conclude the construction of project life cycle Madinat Al Mawater phase 1 & phase
Slide 11: Recurring Income Provides Better Cash Flow Visibility
Recurring Income Provides Better Cash Flow Visibility 1,000 180% 95% 900 94% 94% 96% 160% 96% 800 891 140% 700 800 761 120% 600 630 630 100% 500 590 578 499 80% 400 474 452 57% 60% 300 58% 57% 54% 200 48% 40% 100 20% - 0% H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 Rental Revenue Rental Op.Profit % of R
Slide 12: Balance Sheet Strength provides an Opportunity for Leveraged Growth
Balance Sheet Strength provides an Opportunity for Leveraged Growth Timely sale of properties have adequately supported liquidity 40 1.00 0.90 35 21 21 0.80 30 0.76 21 0.73 0.70 25 21 0.61 0.60 20 20 0.50 0.46 0.41 0.40 15 0.30 10 16 16 0.20 13 5 9 8 0.10 - 0.00 2019 2020 2021 2022 H1 2023 Net debt*
Slide 13: Debt Maturity Profile
Debt Maturity Profile* (QAR Mn) QAR Million June-2023 Debts 16,726 9,638 Cash 605 Net Debts* 16,121 Total Equity 21,348 Total Assets 40,088 1,254 2,167 1,608 1,460 599 2023 2024 2025 2026 2027 2028 & Key Ratio June-2023 Beyond Net Debt* / Equity 0.76 Liquidity – QAR 1,343 mn (June 2023) QAR 443 mn Q
Slide 14: Attractive Dividend Yield
61% 61% 60% QAR Mn 7% 57% 7% 973 973 973 6% 6% 6.36% 856 856 51% 51% 6% 778 681 681 5% 5% 486 40% 4% 31% 28% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 Attractive Dividend Healthy Dividend Payout QAR 7.3 Bn C
Slide 15: Well established, Adding diversity
Well established Adding diversity Labour Housing & Residential & Commercial Education Sector Healthcare Sector Logistics ▪ In-depth understanding ▪ Strict implementation of ▪ Govt. allocated QAR 19.2 ▪ Govt. allocated QAR 22.7 of the sector to gauge law banning unorganised bn in 2019 (9.3% of total
Slide 16: Premiumisation to Drive Sustained Growth
PREMIUMISATION TO DRIVE SUSTAINED GROWTH & BETTER PROFITABILITY | FREE HOLD ZONES EXPANSION | HOW IT BENEFITS BARWA? 2004 (3 Zones) 2019 (10 Zones) District * It creates opportunity for: West Bay 5 5 mn sq. m. + Building more (Legtaifiya) otablange residential units like The Pearl- Qatar Lusail Dara
Slide 17: Qatar Economy
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Slide 18: Qatar Economy - An Overview
QATAR ECONOMY - AN OVERVIEW | QATAR ECONOMY IS EXPECTED TO CONTINUE THE GROWTH MOMENTUM Ee ae AT A GLANCE Population - 2.66 million as of June 2023 (Source: Planning & Statistics Authority). GDP Current Prices (2022) - US$ 225.4 billion (Source: IMF Data April 2023). Gross domestic product per capit
Slide 19: Sep-20 Dec-20 Mar-21
• 216.60 • 212.24 • • • Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 • • • • • •
Slide 20: Qatar National Vision 2030
Qatar’s successful bid for the World Cup has Qatar National Vision 2030 had a multi-fold positive impact on Qatar’s Economy by acting as a catalyst to accelerate various projects envisaged by the government in area of : 4 PILLARS OF DEVELOPMENT Infrastruct Real Hospitality ure and Estate Tourism Sec
Slide 21: Financial Track Record
SSS BARWA 69 - INANCIAL TRACK RECORD -
Slide 22: Total Income, Operating Revenue, Operating Profit, PAT
TOTAL INCOME1 & OP. REVENUE2 OPERATING PROFIT3 1). Total Income= Op. 1,389 1,311 1,325 Revenue+Finance Lease Inc + Property 1,163 660 1,093 601 sales & 932 922 522 construction 503 821 780 481 income + FV 762 gain/loss on Invst Properties + Profit on disposal of associates + Misc. Income H1 2019 H1
Slide 23: H1 2023 Key Figures
83% Operating Operating Profit op. revenue is from rentals Revenue QAR 660 mn QAR 922 mn 72% 95% QAR 16.12 bn Operating Margin of Operating Profits from net Net Debt rental QAR 1.3 bn New Operating Projects 17.5% cash Start the operations of Madinatna, dividend for 2022, achieving a Argentine Neighb
Slide 24: Operating Revenues and Operating Profits
Operating Revenues Operating Profits Consultancy 4% Consultancy 5% Consultancy Consultancy 14% 17% Rental Rental Rental 96% 95% Rental 86% 83% H1 2022 H1 2023 H1 2022 H1 2023
Slide 25: Balance Sheet Overview, Cash Flow Overview
BALANCE SHEET OVERVIEW CASH FLOW OVERVIEW TOTAL QAR 40,088 mn Others Advances for 0.7% Projects 1.1% 0.7% Receivables & Prepayments 3.9% Lease liabilities Intangible Assets 0.3% 41.7% 1.5% Trading Properties Obligations 1.5% under 0.9% Islamic 3.2% Cash & bank finance balances 1.3% contracts* Payabl
Slide 26: Ongoing Projects Under Construction
ONGOING PROJECTS UNDER CONSTRUCTION PROJECT NAME TIMELINE Start Finish Qt | Q2]@3}.Q4] Qi | Q2 | Q3/ Q+| Q1| Q2] Qs | Q4] Q1] Q2} Q3] Q4| Qr | Q2] Qs] Q4| QI] Qz 1. Madinat AlMawater Phase3 Aug9 Deo23 OO @®® ONGOING Projects
Slide 27: Upcoming Project Opportunities
UPCOMING PROJECT OPPORTUNITIES Barwa Real Estate Group is conducting feasibility studies and design enhancements for several land banks in order to ensure their best use and derive attractive returns, including: * Barwa Al Doha + Al Khor Community * Energy City * DaraB-F + AlKharaej Land Barwa Real
Slide 28: Annexure
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Slide 29: Geographical Distribution of Projects
GEOGRAPHICAL DISTRIBUTION OF PROJECTS N-Ghowayiah Akhor Recreation Khor Community Gott @ = InProgress + Madinat Al Mawater Phase3 @ LAND BANK peace Auer a me Al Karas esidenal Tver + AlWakra Residential + Barwa Al Doha-A&B tinh Sra y Para BE af -Alagaria Delta Center ° Lusail Golf* 3 ' * Umm Shahrai
Slide 30: Residential Portfolio
RESIDENTIAL PORTFOLIO Name of Al Khor Community 3,171 Residential Labor Camp 3* 982 Labor accommodation Ras Laffan Accommodation-West Side" 688 Labor accommodation Labor Camp 2” 662 Labor accommodation Porta cabins 451 Phase 2° 493 Labor accommodation LaborCamp 1" 329 Labor accommodation Asas Towers
Slide 31: Mixed Use Portfolio (1/2)
MIXED USE PORTFOLIO (172) - thes e Residential/Labour Ret: e Hotel Warehou: Baraha Warehouses and . Workshop Industrial - - - - 184.8 Barwa Al Sadd Mix Use 261 42 41.8 232 - Barwa Village Mix Use 457 106.2 - - - Masaken Meaismeer Mix Use 992 2.0 - - - Masaken Al Sailiya Mix Use 992 2.2 - - - Barwa A
Slide 32: Mixed Use Portfolio (2/2)
MIXED USE PORTFOLIO (2/2) Barwa Village Expansion Mix Use i * Sen Arde ros tag Development Mix Use 25,360 13.3 bt Souq Mesaieed Mix Use 138 12.3 7A Old Salata Building Mix Use - 0.9 1.6 Dukhan Commercial Complex Mix Use 31 L7 0.2 Souq Dukhan Mix Use - 3.7 1.0 Mesaeed Commercial Center Mix Use - V7 1
Slide 33: International Portfolio
INTERNATIONAL PORTFOLIO _. = Office Name of Project Nature of Project (000 sq. m.) Cavendish Office 1.0 North Row Office 2.2
Slide 34: Project Status
PROJECT STATUS MADINAT AL MAWATER - PHASE 3 BUA (sq. m.) 165,631 Construction Start Date Aug-19 Construction End Date Dec-23
Slide 35: Domestic Land Bank
DOMESTIC LAND BANK Lusail (Golf) 3,476" Baraha3 523 Dara B-F 130 Al Khor Zone 7 54 Barwa Al Doha 48 Alaqaria DeltaCenter 38 Lehwaila Beach Club 28 Asas Marina Tower 28 Alagaria South Gate 28 Shell Extension 15 AlKharaej Residential Tower 4 E Barwa City Phase3 330 Mawater Phase4 266 Al-Khor Zone 405
Slide 36: International Land Bank
INTERNATIONAL LAND BANK Bahrain Bay 12.5 Bahrain Cyprus Land 54,7 Cyprus Marrakech* 9.6 Morocco Fez* 31 Morocco Total 79.9 “Includes pre-existing structures
Slide 37: Agreement to sell two land plots in Lusail
On 20 July 2023, Barwa Real Estate announced an agreement to sell two land plots in the Lusail area: Barwa Real Estate announced that Lusail Golf Development Company, fully owned by the Barwa Group, has reached an agreement to sell two land plots in the Lusail area with a total area of 3,476,192 sqm
Slide 38: Investor Relation Team
INVESTOR RELATION TEAM © +974 44088785 © Barwa.Investor@barwa.com.ga ©® www.barwa.com oe BARWA Oogs—__+
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