Barwa Real Estate Co. · QSE:BRES
Barwa Real Estate — Q1 2024 Earnings Presentation
37 slides from Barwa Real Estate's earnings presentation, March 2024
Slide 1: Investor Presentation March 2024
INVESTOR PRESENTATION March 2024
Slide 2: Disclaimer
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
Slide 3: Discussion Summary
DISCUSSION SUMMARY • Barwa At A Glance • Investment Rationale • Qatar Economy • Financial Track Record • Annexure
Slide 4: Barwa at a Glance
BARWA AT A GLANCE 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, exc
Slide 5: Major Contributor to Qatar's Development
MAJOR CONTRIBUTOR TO QATAR’S DEVELOPMENT QAR 3.3 bn dividend 5.5 mn sq. m. built-up distributed in last 5 09 01 area under operations years Leadership in Net Debt : Equity of 54% 08 02 affordable housing MAJOR CONTRIBUTOR TO QATAR’S Land Bank of 1.90 mn sq. m. Operating 14,069 residential DEVELOPMEN
Slide 6: Investment Rationale
BARWA. INVESTMENT RATIONALE
Slide 7: Investing in Barwa
INVESTING IN BARWA 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 coll
Slide 8: Barwa Real Estate – Portfolio Overview
BARWA REAL ESTATE– PORTFOLIO OVERVIEW LAND BANK RESIDENTIAL INDUSTRIAL • 1.90 million sq. m. • More than 448,000 domestic land 14,069 residential sq. m. warehouses & • Around 70,000 sq. m. units & Villas workshops international land COMMERCIAL LABOUR ACCOM. Around 55,000 labour • Around 365,000 sq.
Slide 9: Balanced Portfolio of Assets
BALANCED PORTFOLIO OF ASSETS 9% Retail 4.80% 4% 4.41% Offices 3.89% 3.43% Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 %35 50% Mixed Use Residential Rental yield on total investment properties*** Rental yield on operating properties** Current Mix Forward Mix • Residential
Slide 10: Inherent Strength Built Over Time Resulted in Strong Brand Preference
INHERENT STREGNTH BUILT OVER TIME RESULTED IN STRONG BRAND PREFERENCE Timeliness Quality • Proven developer and operator of a range of • Quality control is paramount despite tight cost assets with timely delivery measures • Routine quality checks at various stages of • Barwa was able to conclude the
Slide 11: Significant Recurring Revenues & Operating Profit
SIGNIFICANT RECURRING REVENUES & OPERATING PROFIT Recurring Income Provides Better Cash Flow Visibility QAR mn 500 99% 180% 96% 97% 8… 450 97% 160% 442 442 456 400 140% 350 380 370 120% 300 335 327 304 100% 250 286 245 71% 80% 200 67% 65% 60% 150 62% 55% 100 40% 50 20% - 0% Q1 2020 Q1 2021 Q1 2022 Q
Slide 12: Prudent Gearing, Sufficient Room for Leveraged Growth
PRUDENT GEARING, SUFFICIENT ROOM 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 0.80 30 22 22 21 0.73 0.70 25 0.60 0.60 21 0.57 0.54 20 0.50 0.46 0.40 15 0.30 10 16 0.20 13 13 1
Slide 13: Comfortable Liquidity Position, for Prudent Capital Allocation
COMFORTABLE LIQUIDITY POSITION, FOR PRUDENT CAPITAL ALLOCATION Debt Maturity Profile* (QAR Mn) QAR Million March-2024 6,542 Debts 12,610 Cash 936 Net Debts* 11,674 Total Equity 21,525 1,630 1,278 Total Assets 36,172 977 1,174 1,009 2024 2025 2026 2027 2028 2029 & Key Ratio March-2024 Beyond Net Debt
Slide 14: Optimising Shareholder Value
OPTIMISING SHAREHOLDER VALUE 61% 61% 60% QAR Mn 7% 57% 57% 7% 6% 973 973 973 6% 6.36% 6.30% 856 51% 51% 6% 778 681 681 700 5% 40% 486 4% 28% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023 Attractive Dividend Heal
Slide 15: Enhancing Asset Portfolio
ENHANCING ASSET PORTFOLIO Well established Adding diversity Labour Housing & Public Private Residential & Commercial Education Sector Logistics Partnership (PPP) model In-depth understanding Strict implementation of Govt. allocated QAR 19.2 Focus on PPP structure of the sector to gauge law b
Slide 16: Premiumisation to Drive Sustained Growth & Better Profitability
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 1.97 mn sq. m. • Building more (Legtaifiya) Total land bank residential units like The Pearl- Qatar Lusail Dar
Slide 17: Qatar Economy
BARWA. QATAR ECONOMY
Slide 18: Qatar Economy – An Overview
QATAR ECONOMY – AN OVERVIEW QATAR ECONOMY IS EXPECTED TO CONTINUE THE GROWTH MOMENTUM POISED FOR OVERALL AT A GLANCE DEMAND DRIVERS GROWTH • Population – 3.1 million as of • Qatar’s natural gas resources are the • Residency for expats by March 2024 (Source: Planning & country’s main economic engine
Slide 19: Qatar Real Estate – An Overview
QATAR REAL ESTATE – AN OVERVIEW QATAR REAL ESTATE Residential Sector • Recent law amendment of expanding freehold ownership in residential sector and INDEX subsequent introduction of the 2-tier residency system to provide further incentive to foreign owners to have outright owner • Currently facing
Slide 20: Demand Drivers
DEMAND DRIVERS Qatar National Vision 2030 Freehold Inbound Governmen Property Tourism t Initiative Ownership 4 PILLARS OF DEVELOPMENT Human Development: Development of all its Expansion of the The National Tourism To improve transparency freehold and leasehold Council has continued to in the real es
Slide 21: Financial Track Record
BARWA. FINANCIAL TRACK RECORD
Slide 22: Financial Overview
FINANCIAL OVERVIEW (for the period ended 31 March 2024) TOTAL INCOME1 & OP. REVENUE2 OPERATING PROFIT3 1). Total Income= Op. Revenue+Finance Lease Inc + Property 799 392 sales & 698 340 336 construction 663 333 income + FV 517 533 518 489 503 481 254 gain/loss on Invst 387 Properties + Profit on dis
Slide 23: Q1 2024 Key Highlights
Q1 2024 KEY HIGHLIGHTS 77% Operating Revenue Operating Profit Op. revenue is from QAR 481mn QAR 333mn rentals 69% 86% QAR 11.67bn Operating Margin of Operating Profits Net Debt from net rental QAR 1.7bn Total Assets 18% cash dividend for 2023, Liquidity QAR 36.2bn achieved a 6.30% dividend yield
Slide 24: Q1 2024 vs Q1 2023 Key Highlights
Q1 2024 vs Q1 2023 KEY HIGHLIGHTS Operating Revenues Operating Profits Consultancy 3% Consultancy Consultancy 14% 14% Consultancy 23% Rental 97% Rental Rental 86% Rental 86% 77% Q1 2023 Q1 2024 Q1 2023 Q1 2024
Slide 25: Balance Sheet & Cash Flow Overview
BALANCE SHEET & CASH FLOW OVERVIEW As at 31 March 2024 BALANCE SHEET OVERVIEW CASH FLOW OVERVIEW TOTAL QAR 36,172 mn Others Receivables & 2.0% Prepayments 0.7% Trading Properties 8.0% Lease liabilities 34.9% Cash & bank balances 1.6% Obligations Others 2.6% under 3.0% Islamic 1.7% finance Property,
Slide 26: Ongoing Projects Under Construction
ONGOING PROJECTS UNDER CONSTRUCTION PROJECT NAME TIMELINE 2019 2020 2021 2022 2023 2024 Start Finish Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1. Madinat Al Mawater Phase Aug-19 Dec-24 3 ONGOING PROJECTS
Slide 27: Project Status (Phase 3 - Part 2 – Other Facilities)
PROJECT STATUS (Phase 3 - Part 2 – Other Facilities) Spare Parts Mall Showrooms & Accommodations Premium Showroom MADINAT AL MAWATER – PHASE 3 – Part 2 Other Hypermarket Masjid Facilities Land Area (sq. m.) 273,878 BUA (sq. m.) 131,270 Construction Start Date Jul - 20 Construction End Date Dec-24
Slide 28: 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 • Dara B-F • Al Kharaej Land
Slide 29: Annexure
BARWA ANNEXURE
Slide 30: Geographical Distribution of Projects
GEOGRAPHICAL DISTRIBUTION OF PROJECTS In-Progress Madinat Al Mawater Phase 3 Al Huweila Land Ras Laffan West Side labor accommodation Al Khor Recreation Extension Al Khor Recreation Al Khor Community LAND BANK Shell accommodation Project Al Khor land Al Khor Extension School site 4 Al Kharaej Resi
Slide 31: Residential Portfolio
RESIDENTIAL PORTFOLIO Name of Project Residential (Units) Nature of Project 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 La
Slide 32: Mixed Use Portfolio (1/2)
MIXED USE PORTFOLIO (1/2) Residential/Labour Retail Office Hotel Warehouse Name of Project Nature of Project (Units) (‘000 sq. m.) (‘000 sq. m.) (Keys) (‘000 sq. m.) Baraha Warehouses and Industrial - - - - 184.8 Workshop Barwa Al Sadd Mix Use 261 4.2 41.8 232 - Barwa Village Mix Use 457 106.2 - - -
Slide 33: Mixed Use Portfolio (2/2)
MIXED USE PORTFOLIO (2/2) Office Name of Project Nature of Project Residential (Units) Retail (‘000 sq. m.) (‘000 sq. m.) Barwa Village Expansion Mix Use 177 10.7 - (Mukaynis Compound) * Mix Use 25,360 13.3 5.4 Salwa Affordable Housing Development Souq Mesaieed Mix Use 138 12.3 7.1 Old Salata Buildi
Slide 34: International Portfolio
INTERNATIONAL PORTFOLIO Office Name of Project Nature of Project (‘000 sq. m.) Cavendish Office 1.0 North Row Office 2.2
Slide 35: Domestic Land Bank
DOMESTIC LAND BANK Owned Area (‘000 sq. m.) Baraha 3 523 Dara B-F 130 Barwa Al Doha 48 Alaqaria Delta Center 38 Lehwaila Beach Club 28 Asas Marina Tower 28 Alaqaria South Gate 28 Shell Extension 15 Al-Kharaej Residential Tower 4 Leased Area (‘000 sq. m.) Barwa City Phase 3 330 Mawater Phase 4 266 Al
Slide 36: International Land Bank
INTERNATIONAL LAND BANK Land* Area (‘000 sq. m.) Country Bahrain Bay 12.5 Bahrain Cyprus Land 54.7 Cyprus Fez * 3.1 Morocco Total 70.3 *Includes pre-existing structures
Slide 37: Investor Relation Team
Investor Relation Team +974 44088785 Barwa.Investor@barwa.com.qa www.barwa.com.qa
Barwa Real Estate Company — Q1 2024 Earnings Presentation on 6ix