Barwa Real Estate Co. · QSE:BRES
Barwa Real Estate — Investor Presentation (October 2019)
45 slides from Barwa Real Estate's investor presentation, October 2019
Slide 1: Investor Presentation October 2019
See Be EB he INVESTOR PRESENTATION=. .~. OCTOBER 2019
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: Leading real estate developer headquartered in Doha, Qatar
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 the leading and reliable real estate company recognised for its strong values, inn
Slide 5: Barwa key facts
Completed 7,342 3.5 mn sq m built-up Leadership in residential units and area under operations affordable housing 37,340 labour rooms Balanced product mix 11% CAGR Cash ~ 80% Op. Revenue2 is resulting in stable Profits1 (2014-18) recurring rentals rental yield Land Bank of 5.2 mn QAR 4 bn dividend s
Slide 6: Investment Rationale
Ss BARWA (fe) ——— INVESTMENT RATIONALE *
Slide 7: Investment rationale overview
• 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
• 252,059 Sq m Retail • 7,342 residential • 68,973 Sq m Office • 445,779 Sq m • 5.2 Million Sq m units & Villas • 232 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 2016-2018 100 8% 8% Stable yield 76 Declining Rental Index Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 KPMG Residential Rental Index Rental Yield Current Mix Forward Mix • Residential assets wi
Slide 10: Proven developer and operator with timely delivery
• 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 and share performance
10% Barwa 35% Barwa 68% Barwa 6.4% Peer 1 1.4% Peer 1 50% Peer 1 77% 0.9% Peer 2 4.6% Peer 2 22% Peer 2 2.7% 47% RoE ; RoA * As on 2018 Oct/16 Feb/17 Jun/17 Oct/17 Feb/18 Jun/18 Oct/18 Feb/19 Jun/19 Oct/19 Qatar QE Al Rayan Islamic - Price Barwa Real Estate Co. QE Real Estate 11 *Adusted operating m
Slide 12: Recurring rental revenue and operating profit
QAR mn 95% 89% 88% 86% ❑ 3.5 mn sq.m BUA# under 82% 82% operation 77% 76% 72% 74% ❑ Rental assets spread across 1517 1359 1291 1293 1566 residential, commercial and 1230 1201 1005 997 978 retail verticals ❑ Rental income grew by 21% from 2016 to 2018 period 2014 2015 2016 2017 2018 despite sanctions
Slide 13: Balance sheet strength provides opportunity for leveraged growth
Balance Sheet Strength provides an Opportunity for Leveraged Growth Cash Profits have increased by CAGR 11% Timely Sale of Properties have adequately providing sufficient Liquidity supported Liquidity QAR mn QAR bn Net debt Equity Net Debt: Equity 19 19 18 16 18 0.4 0.4 826 821 876 789 0.3 0.3 568 0
Slide 14: Comfortable debt maturity profile
Comfortable Debt Maturity Profile (QAR Mn) 2,256 QAR Million Sep-19 2,011 1,854 Debt 9,568 1,430 Cash 1,432 998 Net Debt 8,136 734 Total Equity 19,361 Total Assets 31,466 2020 2021 2022 2023 2024 Beyond 2024 Liquidity – QAR 3,837 mn (Sep 2019) Key Ratio Sep-19 QAR 1,432 mn QAR 1,661 mn QAR 744 mn Ne
Slide 15: Consistent shareholder returns
Consistency in Cash Profits, Low Leverage has given Consistent Shareholder Returns QAR Mn 8% 8% 61% 57% 57% 964 961 7% 6% 50% 51% 848 841 5% 6% 5% 31% 31% 28% 3% 419 389 389 321 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 ▪ Govt allocated understanding of the of law banning QAR19.2 bn in 2019 QAR22.7bn in 2019 sector to gauge unorganised labour (9
Slide 17: Land bank and 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 3.5 mn Sq. M Al Khraij
Slide 18: Qatar Economy
~_ BARWA QATAR ECONOMY
Slide 19: Qatar economy overview
• Population – 2.7 million in • Qatar’s natural gas resources are the • Permanent Residency for 2018 (Source: Qatar country’s main economic engine and expats by purchasing USD Statistics Authority) contains approx. 14% of all known 200,000 worth real estate natural-gas reserves • GDP - USD 192 Billi
Slide 20: 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 292 Retail Sector • Currently witnessing a constant influx o
Slide 21: World Cup impact on Qatar 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 : Human Development: Development of all • Infrastructure and utilities segments its people to enable them to
Slide 22: aH Mm ot On
1 aH Mm ot On AUNTIE mee nw | | A a ae |
Slide 23: Financial track record
In QAR Million 1,384 1,187 1,260 1,144 1,155 1,737 1,803 1,904 1,960 1,792 2,715 2,962 2,588 4,272 4,139 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Total Income Op. Revenue 1,049 996 882 914 926 2,787 3,069 1,620 1,716 1,918 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 1). Total Income=
Slide 24: 9M FY19 highlights
77% revenue is from 9M FY19 Operating 9M FY19 Operating recurring rentals Revenue QAR 1.2 bn Profit QAR 727 mn 9M FY19 Operating 90% of Operating Margin 63%, up by Profits from recurring Net Debt at QAR 8.1 bn 100 bps rental Leasing started in Construction in Mukaynis Compound Madinat Al Mawater Liq
Slide 25: Q3 and 9M 2019 income statement
QAR mn Q3 2019 Q3 2018 % Change 9M 2019 9M 2018 % Change Operating Revenue 380 425 -10% 1,153 1,261 -9% Operating Profits 235 266 -12% 727 784 -7% Operating Profits Margin 62% 63% - 63% 62% - EBIDTA 177 210 -15% 551 612 -10% Non Operating Income* 209 134 56% 523 491 7% Depreciation (14) (4) 250% (42
Slide 26: Revenue and profit mix
Consultancy, Consultancy, Consultancy Consultancy 13% 10% , 25% , 23% Rental, Rental, Rental, Rental, 90% 87% 75% 77% Q3 2019 Q32018 Q3 2019 Q32018 Consultancy, Consultancy, 7% Consultancy Consultancy 11% , 23% , 20% Rental, Rental, Rental, Rental, 89% 93% 77% 80% 9M 2019 9M2018 9M 2019 9M2018 26
Slide 27: Balance sheet composition
Total: QAR 31,466 mn Investment in 1.7% 2.6% 2.4% Others Associates 3.6% Payables & 5.5% Property, plant 4.6% 5.3% other & Equipment Liabilities 0.7% Others Obligations 30.4% Cash & bank 15.8% under balances Islamic finance Trading Contracts Properties Intangible Assets Advances for projects & 65.9%
Slide 28: Project construction timeline
Construction Project 2016 2017 2018 2019 2020 Timeline Start Finish Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1. (Mukaynis Compound) Salwa Affordable Housing Dec-17 Nov-19 1.1 Zone 1 Dec-17 May-19 1.2 Zone 2 Dec-17 Aug-19 1.3 Zone 3 Dec-17 Nov-19 2. Al Khor Recreation Extension Jul
Slide 29: Proposed construction timeline
Proposed Project Construction Timeline 2020 2021 Start Finish Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Baraha Phase III Jan-20 Dec-21 Um Shahrain Extension Jan-20 Jun-21 Barwa City 3 Jan-20 Dec-21 29
Slide 30: Annexure
ANNEXURE
Slide 31: Project map and list
• Salwa Affordable Housing Al Howailah (Mukaynis Compound) Affordable Housing – Khor • Al Khor Recreation Extension Al Khor Recreation Extension Al Khor Recreation • Dara A Barwa Salwa – Shell Project Lusail Golf • Madinat Al Mawater Phase 3 Barwa Salwa Al Khor Extension Dara A Dara B-F Truck Park U
Slide 32: Residential projects by units
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 32 * Labour Rooms
Slide 33: Operational projects by type
Nature of Residential/Labour Retail Office Hotel Warehouse Name of Project 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: Operational projects 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) * Salwa Affordable Housing Mix Use 25,360 13.3 5.4 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 and 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 Aug-19 36
Slide 37: Project details: land area and 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 Nov-19 Construction End Date Nov-19 37
Slide 38: Project details: Madinat Al Mawater Phase 3
Land Area (sq. m.) 417,407 BUA (sq. m.) 167,072 Construction Start Date Aug - 19 Construction End Date Nov-20 38
Slide 39: Owned and leased area under development
Owned Area (‘000 Sq M) Lusail (Golf) 3,476 Baraha 3 523 DARA B-F 130 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 4 282.4 Labor Accommod
Slide 40: International land bank
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: Chairman of the Board of Directors
CHAIRMAN OF THE BOARD OF DIRECTORS H.E. Mr. Salah Bin Ghanim Bin Nasser Al Ali was appointed as Qatar’s Minister of Sports and Culture on January 27th, 2016 after more than two years as Minister of Youth and Sports. His Excellency held a number of public positions such as Chief of the State Audit Bu
Slide 42: Vice Chairman & Managing Director
VICE CHAIRMAN & MANAGING DIRECTOR Mr. Issa Mohammed Al Mohannadi is now holding the post of Vice Chairman and Managing Director of Barwa Real Estate Group. Mr Issa Al Muhannadi occupied the role of Qatar Tourism Authority Chairman. His project management and international business background served
Slide 43: Board member
BOARD MEMBER Mr. Mohammed Bin Abdulaziz Al-Saad started his career working in leading roles in the public sector; he led the investment program of Qatar’s largest publicly listed real estate company at the time-Qatar Real Estate Investment Company (Al Aqaria). In late 2006, he took over as CEO of Th
Slide 44: Board members
BOARD MEMBER Mr. Nasser Ali Al Hajri works as the Financial and Administrative Control Director in the office of H.H. the Father Emir. Mr. Al Hajri holds a Master of Business Administration specialized in banking from the University of Finance and Banking and is currently doing his PhD in Business F
Slide 45: Investor relations contacts
Mr. Khaled Al Maothen Acting Investor Relation Officer Contact No : +974 44088785 Email : khalid.almoathen@barwa.com.qa Chintan Mehta/ Chinmay Madgulkar/ barwa.com.qa barwa.com.qa Nachiket Kale IR Consultant Contact No : +91 98921 83389 Email: barwa@dickensonworld.com 45
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