Barwa Real Estate Co. · QSE:BRES
Barwa Real Estate — FY2022 Earnings Presentation
38 slides from Barwa Real Estate's earnings presentation, December 2022
Slide 1: Investor Presentation December 2022
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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 3.9 bn dividend : rare + 5.5 mn sq. m. built-up distributed in wee area under operations . Leadership in Net Debt: Equity of 73% affordable housing MAJOR CONTRIBUTOR Land Bank of 5.4 i 10 A 07 it 6: idential ank of 5.4.mn sq. m. in perating 14,069 resi
Slide 6: Investment Rationale
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Slide 7: Strong Balance Sheet, Moving Up the Value Chain
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. • More than 330,000 sq. m. retail Around 55,000 labour (shopping & restaurant) an
Slide 9: Portfolio Mix: Retail, Offices, Mixed Use
9% Retail 4% Offices %35 %50 Mixed Use Residential • • • • • •
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 2,000 95% 180% 1,800 94% 97% 1,885 160% 1,600 94% 89% 1,746 140% 1,400 120% 1,200 1,334 1,345 1,302 1,271 100% 1,000 1,180 1,044 80% 800 906 860 72% 60% 60% 600 52% 40% 400 44% 43% 200 20% - 0% 2018 2019 2020 2021 2022 Rental Revenue Rental Op.Pr
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 1.0 0.9 35 21 0.8 30 21 0.73 0.7 25 0.6 0.6 21 20 20 20 0.5 0.5 0.4 0.4 15 0.3 0.3 10 16 0.2 13 5 9 7 8 0.1 - - 2018 2019 2020 2021 2022 Net debt Equity Net Debt: equi
Slide 13: Comfortable Debt Maturity Profile
Comfortable Debt Maturity Profile (QAR Mn) QAR Million Dec-2022 Debts 16,480 7,106 Cash 899 Net Debts 15,581 Total Equity 21,463 2,596 1,942 1,750 1,476 1,610 Total Assets 39,986 2023* 2024 2025 2026 2027 2028 & Key Ratio Dec-2022 Beyond Net Debt/ Equity 0.73 Liquidity – QAR 1,578 mn (Dec 2022) QAR
Slide 14: Attractive Dividend Yield and Payout Ratio
61% 61% QAR Mn 7% 57% 57% 7% 973 973 973 6% 6% 856 856 51% 51% 6% 778 778 6% 681 5% 5% 486 40% 4% 31% 28% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 2014 2015 2016 2017 2018 2019 2020 2021 Attractive Dividend Yield Healthy Dividend Payout Ratio QAR
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) otablange residential units like The Pearl- Qatar Lusail Dara A
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 - 2.91 million as of December 2022 (Source: Planning & Statistics Authority). * GDP (2022) - US$ 221billion (IMF estimate, October 2022). * GDP/Capita (2022) - Intl$ 113,675 (purcha
Slide 19: Sep-20 Dec-20 Mar-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: Barwa Financial Track Record
SSS BARWA 69 - INANCIAL TRACK RECORD -
Slide 22: Total Income, Operating Revenue and Operating Profit
TOTAL INCOME1 & OP. REVENUE2 OPERATING PROFIT3 1). Total Income= Op. 2,918 2,907 Revenue+Finance Lease 2,718 1,423 2,572 2,619 1,381 Inc + Property sales & 2,223 construction income + 2,083 1,080 FV gain/loss on Invst 965 970 Properties + Profit on 1,609 1,637 1,536 disposal of associates + Misc. In
Slide 23: 2022 Highlights
84% Operating Revenue Operating Profit op. revenue is from rentals QAR 2,083 mn QAR 1,381 mn 66% 94% QAR 15.58 bn Operating Margin of Operating Profits from net rental Net Debt QAR 1.6 bn New Operating Projects 17.5% cash Start the operations of Madinatna, Barahat dividend for 2021, achieving a 5.04
Slide 24: Operating Revenues and Profits Mix
Operating Revenues Operating Profits Consultancy 5% Consultancy 6% Consultancy 15% Consultancy 16% Rental 95% Rental 94% Rental Rental 85% 84% 2021 2022 2021 2022
Slide 25: Balance Sheet and Cash Flow Overview
BALANCE SHEET OVERVIEW CASH FLOW OVERVIEW TOTAL QAR 39,986 mn 0.5% Advances for Projects Others 0.9% 0.8% 3.9% Receivables & Prepayments 0.3% Lease Intangible 1.5% liabilities 41.2% Assets 2.2% Trading Properties Obligations 1.3% under Islamic 3.5% Cash & bank finance 1.3% contracts balances Payable
Slide 26: Ongoing Projects
ONGOING PROJECTS PROJECT NAME TIMELINE Start Finish 2017 2019 2020 0 2023 1. Mukaynis Compound Additional works 2. Madinat Al Mawater Phase 3 3. Schools Package 1 (PPP) 4. BarahatAljanoub 5. Madinatna Dec-17 Aug.i9 Sep-20 Aug20 Aug20 @® cComPLeTED / ONGOING PROJECTS Oct-22 Jun-23 Oct-22 Nov-22, Nov-
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 AL-Ghowayiph Gott Kara} Residential Tower Darah -AsasMarina Mix © @ stagaria deta Comer Brntanvantoing ato og Bbnatnah QATAR ty,-Rayyon. fees QWatvintovers H @ Nastia tower ! AW gchoateve: his Serpe Barwa Coating @diaghenptessinter at sara cins ‘mae ai mere stat
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) e. 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 Al Bara
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 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 Aug-22 Land Area (sq. m.) BUA (sq. m.) Construction Start Date Construction End Date 1,179,114 Total land area for 8 Schools (sq. mm) 228,440 735,091 2 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 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 on Barwa City Phase3 330 Mawater Phase4 266 Al-Khor Zone 405
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 — FY2022 Earnings Presentation on 6ix