Barwa Real Estate Co. · QSE:BRES
Barwa Real Estate — Q1 2023 Earnings Presentation
38 slides from Barwa Real Estate's earnings presentation, March 2023
Slide 1: Investor Presentation March 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% jon affordable housing CONTRIBUTOR Land Bank of 5.4 i 10 Qa 07 i 6: idential ank of 5.4:mn sq. m. in perating 14,069 residen
Slide 6: Rationale
SSS BA RWA [ Z aa) = E n aa) > Z RATIONALE q
Slide 7: Strong Balance Sheet, Value Chain, Balanced Portfolio
MOVING UP THE VALUE CHAIN PRESENCE ACROSS REAL ESTATE ECOSYSTEM • Moving towards mid to high-mid residential segment in newly developed Lusail city • Barwa selects its product offering in alignment with tangible market • Affordable housing solution for families & blue-collared workers demand • Comme
Slide 8: Land Bank
LAND BANK INDUSTRIAL • 5.4 million sq. m. domestic RESIDENTIAL • More than 448,000 sq. land 14,069 residential units & m. warehouses & • Around 80,000 sq. m. Villas workshops international land COMMERCIAL LABOUR ACCOM. • Around 365,000 sq. m. retail Around 55,000 labour (shopping & restaurant) and r
Slide 9: Portfolio Mix and Rental Yield
9% Retail 110.00 10.00% 4% Offices 100.00 8.00% 90.00 5.42% 4.80% 6.00% 80.00 3.99% 3.43% 4.00% 70.00 60.00 2.00% 50.00 0.00% %35 %50 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Mixed Use Residential Rental yield on total investment properties*** • • • • • •
Slide 10: Timeliness, Cost Efficiency, Quality
Timeliness Quality • Quality control is paramount despite tight cost measures • Proven developer and operator of a range of assets with • Routine quality checks at various stages of project life cycle timely delivery • Barwa ensures high quality of projects despite our keenness in • Barwa was able t
Slide 11: Recurring Income Provides Better Cash Flow Visibility
Recurring Income Provides Better Cash Flow Visibility 500 200% 99% 97% 450 97% 180% 96% 456 400 442 442 160% 350 91% 140% 380 300 335 327 120% 301 304 250 100% 200 245 80% 222 81% 77% 66% 150 60% 62% 100 40% 43% 50 20% - 0% Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Rental Revenue Rental Op.Profit % of
Slide 12: Balance Sheet Strength Provides 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 0.80 30 21 0.76 0.70 0.67 25 0.60 20 20 19 20 0.51 0.50 0.39 0.41 0.40 15 0.30 10 16 0.20 14 5 10 7 8 0.10 - 0.00 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 20
Slide 13: Debt Maturity Profile
Debt Maturity Profile (QAR Mn) QAR Million March-2023 Debts 16,382 5,069 Cash 495 3,786 Net Debts 15,887 2,596 Total Equity 21,010 1,942 1,610 1,379 Total Assets 39,700 2023* 2024 2025 2026 2027 2028 & Key Ratio March-2023 Beyond Net Debt/ Equity 0.76 Liquidity – QAR 1,134 mn (March 2023) QAR 296 mn
Slide 14: Attractive Dividend Yield, Healthy Payout Ratio
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 Yield Healthy Dividend Payout Ratio
Slide 15: Well Established, Adding Diversity
Well established Adding diversity Residential & Commercial Labour Housing & Logistics Education Sector Healthcare Sector ▪ In-depth understanding of the ▪ Strict implementation of law ▪ Govt. allocated QAR 19.2 bn in ▪ Govt. allocated QAR 22.7 bn in sector to gauge tangible banning unorganised labou
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) orange residential units like The Pearl- Qatar Lusail Dara A wh
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 - 3.0 million as of December 2022 (Source: Planning & Statistics Authority). * GDP (2022)- US$ 221 billion (IMF estimate, October 2022). + GDP/Capita (2022) - Intl$ 113,675 (purchas
Slide 19: Sep-20 Dec-20 Mar-21 Jun-21
• 223.41 216.60 • • • • Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 • • • • • •
Slide 20: Qatar National Vision 2030
Qatar’s successful bid for the World Cup has had a multi- fold positive impact on Qatar’s Economy by acting as a Qatar National Vision 2030 catalyst to accelerate various projects envisaged by the government in area of : 4 PILLARS OF DEVELOPMENT Infrastructure Real Estate Hospitality and utilities T
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. Revenue+Finance Lease 699 692 392 Inc + Property sales & 340 336 construction income + 571 517 544 533 FV gain/loss on Invst 488 503 254 Properties + Profit on 245 379 387 disposal of associates + Misc. Income 2) Operating Revenue
Slide 23: Q1 2023 Highlights
86% Operating Revenue Operating Profit op. revenue is from rentals QAR 533 mn QAR 392 mn 74% 97% QAR 15.89 bn Operating Margin of Operating Profits from net rental Net Debt QAR 1.1 bn New Operating Projects 17.5% cash Start the operations of Madinatna, Argentine dividend for 2022, achieving a 6.36%
Slide 24: Operating Revenues and Profits Mix
Operating Revenues Operating Profits Consultancy 3% Consultancy 3% Consultancy 12% Consultancy 14% Rental 97% Rental 97% Rental Rental 88% 86% Q1 2022 Q1 2023 Q1 2022 Q1 2023
Slide 25: Balance Sheet and Cash Flow Overview
BALANCE SHEET OVERVIEW CASH FLOW OVERVIEW TOTAL QAR 39,700 mn Advances for 0.5% Projects 1.6% Others 0.7% Receivables & 3.9% Prepayments Intangible 0.3% Assets Lease 41.3% 1.6% liabilities Trading Properties 1.2% 1.1% Obligations 3.4% Cash & bank under balances 1.3% Islamic finance Others contracts
Slide 26: Ongoing Projects
ONGOING PROJECTS PROJECT NAME TIMELINE 2017 018 2019 2020 O O 2023 Start Finish Qi * auaccomgonml peo? Oa22 EE 2. Maina AlMawaterPhase 3) Ang Deo2s ee 3. Schools Package1(PPP) —Sep-20 Oct-22 [Tr tis 4, BarahatAljanoub Aug20 Nov-22, tr 5. Madinatna Aug-20 Nov-22, CT i‘ CS;C*zs @® cComPLeTED / ONGOING
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: * Furjan Wadi Lusail * Barwa Al Doha + Al Khor Community + Energy City * Barwa City Phas
Slide 28: Annexure
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Slide 29: Geographical Distribution of Projects
GEOGRAPHICAL DISTRIBUTION OF PROJECTS @ = InProgress + Madinat Al Mawater Phase 3 1 Soup @ LANDBANK bar Khare Reta Tower + AlWakra Residential * Barwa Al Doha-A& B ttn Sra y Para BP -Alagaria Delta Center . Lusail Golf 3 ' + Umm Shahrain Extension Pas endanwrehoaing Liga © Barwa City3 + Barwa AlBara
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 Labor Camp 1 329 Labor accommodation Asas Towers
Slide 31: Mixed Use Portfolio (1/2)
MIXED USE PORTFOLIO (172) e e Residential/Labour Ret Office Hotel Warehou: coo sam) Baraha Warehouses and . Workshop Industrial - - - - 184.8 Barwa Al Sadd Mix Use 261 42 41.8 232 - Barwa Village Mix Use 457 106.2 - - - MasakenMeaismeer Mix Use 992 2.0 - - - Masaken Al Sailiya Mix Use 992 2.2 - - -
Slide 32: Mixed Use Portfolio (2/2)
MIXED USE PORTFOLIO (2/2) Nature of Project Residential (Units) Retail (‘000 sq. m.) 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
Slide 33: International Portfolio
INTERNATIONAL PORTFOLIO Name of Project Nature of Project Cavendish Office 1.0 North Row Office 2.2
Slide 34: Project Details: Land Area, BUA, Construction Dates
Land Area (sq. m.) BUA (sq. m.) Construction Start Date Construction End Date 339,716 165,631 Aug-19 Dec- 23 Land Area (sq. m.) BUA (sq. m.) Construction Start Date Construction End Date 1,179,114 Total land area for 8 Schools (sq. m) 228,440 735,091 z Dec-17 Total BUA for 8 Schools (sq. m.) 107,000
Slide 35: Project Details: Land Area, BUA, Construction Dates
Land Area (sq. m.) BUA (sq. m.) Construction Start Date Construction End Date T1357 767,270 Aug-20 Noy-22 Land Area (sq. m.) BUA (sq. m.) Construction Start Date Construction End Date 1,149,169 1,087,785 Aug-20 Noy-22
Slide 36: Domestic Land Bank
DOMESTIC LAND BANK OwnedShell Are 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 Barwa City Phase 3 330 Mawater Phase 4 266 Al-
Slide 37: 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 38: Investor Relation Team
INVESTOR RELATION TEAM © +974 44088785 © Barwa.Investor@barwa.com.ga ©® www.barwa.com oe BARWA Oogs—__+
Barwa Real Estate Company — Q1 2023 Earnings Presentation on 6ix