Barwa Real Estate Co. · QSE:BRES
Barwa Real Estate — Q4 2019 Earnings Presentation
41 slides from Barwa Real Estate's earnings presentation, February 2020
Slide 1: Investor Presentation February 2020
See Be EB he INVESTOR PRESENTATIONS. FEBRUARY 2020
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: Agenda
Barwa At A Glance Investment Rationale Qatar Economy Financial Track Record Annexure 3
Slide 4: Barwa at a glance: vision, mission and 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. Our Vision: To be a reliable Real Estate company, recognized for its strong values, excellence and s
Slide 5: Barwa key facts
Completed 8,129 3.6 mn sq m built-up Leadership in residential units and area under operations affordable housing 37,340 labour rooms Balanced product mix Positive Cash Profits1 ~ 77% Op. Revenue2 is resulting in stable since 2014 recurring rentals rental yield Land Bank of 5.2 mn QAR 4.5 bn dividen
Slide 6: Investment Rationale
Ss BARWA i , INVESTMENT RATIONALE ©
Slide 7: Investment rationale: product offering and recurring cash flows
• 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 indus
Slide 8: Asset portfolio overview
• 260,022 Sq m Retail • 8,129 residential • 68,973 Sq m Office • 445,779 Sq m • 5.2 Million Sq m units & Villas • 701 Hotel Keys Domestic Land Warehouse & • 37,340 labour • 4,290 Sq m shops Workshops rooms • 2.4 Million Sq m • 3,267 Sq m International Land property in UK 8
Slide 9: Current mix and forward mix
Barwa Outperformed Qatar Residential Rental Index over 2016-2019 110 10. 0% 100 100 8.0 % 7.8% 90 6.0 % #4.4% 80 4.0 % 70 71.9 2.0 % *Yield on operating assets is 8.7% as of Q4 FY19 60 0.0 % Q2 2016 Q4 2016 Q2 2017 Q4 2017 Q2 2018 Q4 2018 Q2 2019 Q4 2019 KPMG Residential Rental Index Rental Yield Cu
Slide 10: Proven developer and operator with quality control
• 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 Vil
Slide 11: Peer comparison: RoE, RoA and margins
Barwa 35% Barwa 68% Barwa 10% 6.4% 1.4% Peer 1 50% Peer 1 77% Peer 1 0.9% Peer 2 4.6% Peer 2 22% Peer 2 47% 2.7% RoE ; RoA * As on 2018 Qatar QE Al Rayan Islamic - Price Barwa Real Estate Co. QE Real Estate 11 *Adusted operating margins= Rental Revenue + finance lease income + Consultancy+ Property
Slide 12: Stable recurring rental revenue and operating profit
160 0 200 % QAR mn 94% 88% 86% 89% 180 % 82% 140 0 120 0 1359 1291 1292 1299 160 % ❑ 3.6 mn sq.m BUA# under 100 0 1154 1200 140 % operation 120 % 1005 800 977 935 880 100 % ❑ Rental assets spread across 80% residential, commercial and retail verticals 600 79% 77% 76% 74% 72% 60% 400 ❑ Operating marg
Slide 13: Balance sheet strength provides opportunity for leveraged growth
Balance Sheet Strength provides an Opportunity for Leveraged Growth *Recurring Cash Profits have been generated Timely Sale of Properties have adequately consistently, providing sufficient liquidity supported Liquidity 30 1.2 20 25 20 1.0 19 18 20 18 0.8 807 826 841 15 0.6 0.4 10 0.3 0.4 493 0.3 0.3
Slide 14: Comfortable debt maturity profile
Comfortable Debt Maturity Profile (QAR Mn) 2,308 2,175 QAR Million Dec-19 Debt 9,406 1,705 Cash 1,254 1,055 1,058 1,105 Net Debt 8,151 Total Equity 20,061 Total Assets 31,950 2020 2021 2022 2023 2024 Beyond 2024 Liquidity – QAR 3,293 mn (Dec 2019) Key Ratio Dec-19 QAR 1,254 mn QAR 1,509 mn QAR 529 m
Slide 15: Consistent shareholder returns
Consistency in Cash Profits, Low Leverage has given Consistent Shareholder Returns QAR Mn 61% 8% 57% 57% 8% 973 973 973 856 7% 51% 50% 778 778 6% 5% 6% 584 5% 389 31% 31% 3% 28% 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 QA
Slide 16: Well established, adding diversity
Well Established Adding Diversity Residential & Labour Housing Education Healthcare Commercial & Logistics Sector Sector ▪ In-depth ▪ Strict implementation ▪ Govt allocated QAR ▪ Govt allocated QAR understanding of the of law banning 19.2 bn in 2019 (9.3% 22.7 bn in 2019 (11% sector to gauge unorgan
Slide 17: Land bank and Lusail freehold areas
2004 (3 Zones) 2019 (10 Zones) District West Bay (Legtaifiya) LAND BANK The Pearl- Qatar 7.7 mn Sq. M 68% in Qatar Al Khor Resort 32% Abroad Rawdat Al Jahaniyah Qatar Land Bank Al Qassar 5.2 mn Sq. M Al Dafna 66% of domestic land Onaiza Lusail Land Bank Bank in Lusail. LUSAIL 3.7 mn Sq. M Al Khraij
Slide 18: Qatar Economy
~_ BARWA’ QATAR ECONOMY
Slide 19: Qatar economy key facts
• Population – 2.78 million • Qatar’s natural gas resources are the • Permanent Residency for as of Jan 2020 (Source: country’s main economic engine and expats by purchasing USD Planning & Statistics contains approx. 14% of all known 200,000 worth real estate Authority) natural-gas reserves • FIFA 2
Slide 20: Qatar real estate sector outlook
Residential Sector • Recent law amendment of expanding freehold ownership in residential sector to provide further incentive to foreign owners to have outright owner • Currently facing lower demand on account of rising supply in the market 266.2 Retail Sector 225.8 • Currently witnessing a constant
Slide 21: World Cup impact on Qatar's economy
Qatar’s successful bid for the World Cup has 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 : • Infrastructure and utilities segments Human Development: Development of all its • Real Estate people to e
Slide 22: aH Mm ot On
1 aH Mm ot On AUNTIE mee nw | | A a ae |
Slide 23: Total income and operating revenue
In QAR Million 4,724 1,186 1,144 1,154 3,188 2,862 2,822 2,650 993 990 1,792 1,737 1,802 1,637 1,556 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Total Income Operating Revenue 882 914 926 3069 729 747 1917 1619 1716 1505 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 1). Total Income= Op. R
Slide 24: FY19 highlights
77% op. revenue is from FY19 Operating FY19 Operating Profit recurring rentals Revenue QAR 1.5 bn QAR 990 mn 90% of Operating FY19 Operating Margin Net Debt at QAR 8.1 bn Profits from net 66% recurring rental Leasing started at Proposed a 20% cash Mukaynis Compound & dividend, achieving a Liquidity
Slide 25: Q4 and FY2019 results summary
QAR mn Q4 2019 Q4 2018 % Change 2019 2018 % Change Operating Revenue 402 377 7% 1,556 1,637 -5% Operating Profits 263 209 26% 990 993 - Operating Profits Margin 65% 55% - 64% 61% - EBITDA 195 117 67% 747 729 2% Non Operating Income* 756 911 -17% 1,226 1,343 -9% Depreciation (155) (81) - (145) (35) -
Slide 26: Revenue split: rental and consultancy
Consultancy Consultancy 12% 2% Consultancy Consultancy 22% 21% Rental Rental Rental Rental 88% 98% 78% 79% Q4 2019 Q4 2018 Q4 2019 Q4 2018 Consultancy Consultancy 11% 6% Consultancy Consultancy 23% 21% Rental Rental Rental Rental 89% 94% 77% 79% FY 2019 FY 2018 FY 2019 FY 2018 26
Slide 27: Assets and liabilities composition
1.7% 0.4% 0.4% 4.7% 3.9% Investment in 3.4% 2.3% Associates Advance for Projects & Investments Intangible Assets Equity 62.8% Trading Properties Obligations Under Cash + Bank balance Islamic Finance 83.2% Contracts Ohers Property, Plant & 29.4% Equipment Investment Properties Payables & Other 5.2% L
Slide 28: Project timeline
PROJECT TIMELINE 2016 2017 2018 2019 2020 2021 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. Salwa Affordable Housing Dec-17 Jun-20 1.1 Zone 1 Dec-17 May-19 1.2 Zone 2 Dec-17 Aug-19 1.3 Zone 3 & Additional Works Dec-17 Jun-20 2. Al Khor Recreation Extension*
Slide 29: Re-feasibility studies and planned expansion
Barwa Real Estate is conducting re-feasibility studies and design enhancements for several land banks in order to ensure their best use and derive attractive returns; ➢Barwa Al Baraha Phase 3 ➢Umm Shahrain Extension ➢Barwa City Phase 3 ➢Lusail Golf The company is also planning to expand into the hea
Slide 30: Annexure
ANNEXURE
Slide 31: Project portfolio overview
• Salwa Affordable Housing Affordable Housing – Khor • Madinat Al Mawater Phase 3 Al Khor Recreation Extension Al Khor Recreation Barwa Salwa – Shell Project Lusail Golf Barwa Salwa Al Khor Extension Dara A • Al Wakra Residential Dara B-F Truck Park Um Shahrain • Barwa Al Doha-A & B Mustawdaat Wareh
Slide 32: Residential units by project
Name of Project Residential (Units) Al Khor Community 3,171 Labor Camp 3* 982 Ras Laffan Accomadation-West Side* 688 Labor Camp 2* 662 Portcabins 451 Phase 2* 493 Labor Camp 1* 329 ASAS Towers 320 Dukhan DSSA Labor Camp* 250 Dukhan Non Q.P 48 Dara A 271 32 * Labour Rooms
Slide 33: Project nature and areas
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 - - - Masaken Mix Use 992 2.0 - - - M
Slide 34: Project nature and areas (continued)
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 Mesaieed Mix Use 138 12.3 7.1 Old Slatah Building Mix Use - 0.9 11.6 Dukhan Commer
Slide 35: Office projects
Office Name of Project Nature of Project (‘000 Sq M) Cavendish Office 1.0 North Row Office 2.2 35
Slide 36: Project details: land area, BUA, construction dates
Land Area (sq. m.) 69,757 Land Area (sq. m.) 684,134 BUA (sq. m.) 53,639 BUA (sq. m.) 187,051 Construction Start Date Jul-18 Construction Start Date Aug-17 Construction End Date Dec-19* Construction End Date Sep-19 * Construction work completed & hand-over in process. Operations to commence from Q1
Slide 37: Project details: land area, BUA, construction dates
Land Area (sq. m.) 16,415 Land Area (sq. m.) 1,179,114 BUA (sq. m.) 54,625 BUA (sq. m.) 735,091 Construction Start Date Aug-16 Construction Start Date Dec-17 Construction End Date Dec-19* Construction End Date Jun-20 * Construction work completed & hand-over in process. Operations to commence from Q
Slide 38: Madinat Al Mawater Phase 3 details
Land Area (sq. m.) 417,407 BUA (sq. m.) 167,072 Construction Start Date Aug - 19 Construction End Date Jul-21 38
Slide 39: Owned and leased land area
Owned Area (‘000 Sq M) Lusail (Golf) 3,476 Baraha 3 523 DARA B-F 130 Al Khor Zone 7 54 Barwa Al Doha Phase A 48 Alaqaria Delta Center 38 Lehwaila Beach Club 28 Asas Marina Tower 28 Alaqaria South Gate 28 Al-kharaej Residential Tower 4 Leased Area (‘000 Sq M) Barwa City Phase 3 330 Mawater Phase 4 28
Slide 40: International land holdings
Land* Area (‘000 Sq M) Country Bahrain Bay 12.5 Bahrain Cyprus Land 38.2 Cyprus Marrakech 9.6 Morocco Fez 3.1 Morocco Astrakhan - Russia 150.0 Russia Riyadh Land Development 2,216.1 Saudi Arabia Total 2,429.5 *Includes pre-existing structures 40
Slide 41: Investor relations contact
Mr. Khaled Al Maothen Acting Investor Relation Officer Contact No : +974 44088785 Email : khalid.almoathen@barwa.com.qa Chintan Mehta/ Chinmay Madgulkar/ Nachiket Kale barwa.com.qa IR Consultant Contact No : +91 98921 83389 barwa.com.qa Email: barwa@dickensonworld.com 41
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