Barwa Real Estate Co. · QSE:BRES
Barwa Real Estate — Q3 2022 Earnings Presentation
39 slides from Barwa Real Estate's earnings presentation, September 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION September 2022
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: 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 3.9 bn dividend 3.6 mn sq. m. built-up distributed in last 5 09 01 area under operations years Leadership in affordable Net Debt : Equity of 74% 08 02 housing MAJOR CONTRIBUTOR TO QATAR’S DEVELOPMENT Land Bank of 5.4 mn sq. m. in Operating 7,289 residenti
Slide 6: Investment Rationale
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Slide 7: Investing in Barwa
Investing In Barwa 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 wor
Slide 8: Barwa Real Estate – Portfolio Overview
BARWA REAL ESTATE– PORTFOLIO OVERVIEW LAND BANK INDUSTRIAL • 5.4 million sq. m. domestic RESIDENTIAL • More than 445,000 sq. land 7,289 residential units & m. warehouses & • Around 80,000 sq. m. Villas workshops international land COMMERCIAL LABOUR ACCOM. • More than 288,000 sq. m. retail Around 38,
Slide 9: Balanced Portfolio of Assets
BALANCED PORTFOLIO OF ASSETS 9% Retail 110.00 10.0% 4% Offices 100.00 8.0% 90.00 86.80 6.0% 80.00 83.30 4.0% 70.00 3.3% 60.00 2.0% 50.00 0.0% Q1-2018 Q4-2018 Q3-2019 Q2-2020 Q1-2021 Q4-2021 Q3-2022 %35 %50 KPMG residential rental index Rental yield Mixed Use Residential Current Mix Forward Mix • Res
Slide 10: Inherent Strength Built Over Time Resulted in Strong Brand Preference
Inherent Strength built over time resulted in strong Brand Preference 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 ensur
Slide 11: Significant Recurring Revenues & Operating Profit
SIGNIFICANT RECURRING REVENUES & OPERATING PROFIT Recurring Income Provides Better Cash Flow Visibility QAR mn 1,600 200% 98% 180% 1,400 94% 93% 93% 96% 1,386 160% 1,200 1,199 140% 1,000 120% 981 956 998 800 870 100% 862 762 80% 600 708 663 75% 61% 60% 400 56% 55% 54% 40% 200 20% - 0% Q3 2018 Q3 201
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 1.0 0.9 35 21 0.8 30 0.74 21 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 - - 2
Slide 13: Comfortable Liquidity Position, for Prudent Capital Allocation
COMFORTABLE LIQUIDITY POSITION, FOR PRUDENT CAPITAL ALLOCATION Comfortable Debt Maturity Profile (QAR Mn) QAR Million Sept 2022 8,400 Total Liabilities 18,344 Cash 699 Net Debts 15,594 Total Equity 21,080 2,535 1,882 Total Assets 39,424 1,483 1,546 447 2022 * 2023 2024 2025 2026 2027 & Key Ratio Sep
Slide 14: Optimising Shareholder Value
OPTIMISING SHAREHOLDER VALUE 61% 61% 8% 8% QAR Mn 57% 57% 973 973 973 7% 856 856 51% 51% 6% 778 778 6% 681 6% 6% 5% 486 40% 31% 4% 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 Heal
Slide 15: Enhancing Asset Portfolio
ENHANCING ASSET PORTFOLIO 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
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 (Legtaifiya) 5.5 mn sq. m. • Building more residential Total land bank The Pearl- Qatar units like Lusail Dara
Slide 17: Qatar Economy
SSS BA RWA >= — ECONOM
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 – 2.99 million as of • Qatar’s natural gas resources are the • Residency for expats by purchasing September 2022 (Source: Planning & country’s main
Slide 19: Qatar Real Estate – An Overview
QATAR REAL ESTATE – AN OVERVIEW QATAR REAL ESTATE INDEX Residential Sector • Recent law amendment of expanding freehold ownership in residential sector and subsequent introduction of the 2-tier residency system to provide further incentive to foreign owners to have outright owner 216.3 • Currently f
Slide 20: Demand Drivers
DEMAND DRIVERS 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
Slide 21: Financial Track Record
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Slide 22: Financial Overview
FINANCIAL OVERVIEW (for the nine months ended 30 September) TOTAL INCOME1 & OP. REVENUE2 OPERATING PROFIT3 1). Total Income= Op. 1,965 Revenue+Finance Lease 1,814 1,841 1,729 1,020 Inc + Property sales & 1,612 1,560 917 construction income + 1,420 FV gain/loss on Invst 762 797 1,239 1,138 1,191 711
Slide 23: Q3 2022 Key Highlights
Q3 2022 KEY HIGHLIGHTS 84% Operating Revenue Operating Profit op. revenue is from rentals QAR 1,420 mn QAR 917 mn 65% 94% QAR 15.59 bn Operating Margin of Operating Profits from net rental Net Debt QAR 1.5 bn New Operating Projects 17.5% cash Start the operations of Madinatna, Barahat dividend for 2
Slide 24: Q3 2022 vs Q3 2021 Key Highlights
Q3 2022 vs Q3 2021 KEY HIGHLIGHTS Operating Revenues Operating Profits Consultancy 6% Consultancy 2% Consultancy 16% Consultancy 14% Rental 94% Rental 98% Rental Rental 84% 86% Q3 2021 Q3 2022 Q3 2021 Q3 2022
Slide 25: Balance Sheet & Cash Flow Overview
BALANCE SHEET & CASH FLOW OVERVIEW As at 30 September 2022 BALANCE SHEET OVERVIEW CASH FLOW OVERVIEW TOTAL QAR 39,424 mn Advances for 0.7% Projects Others 0.9% 0.8% Receivables & 4.0% Prepayments 0.3% Lease Intangible liabilities 41.3% Assets 1.6% Trading 1.8% Properties Obligations 1.4% under Islam
Slide 26: Ongoing Projects
ONGOING PROJECTS PROJECT NAME TIMELINE 2017 2018 2019 2020 2021 2022 2023 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 Q1 Q2 Q3 Q4 1. Mukaynis Compound Additional Dec-17 Oct-22 works 2. Madinat Al Mawater Phase 3 Aug-19 Jun-23 3. Schools Package 1 (PPP) Sep-20
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: Projects Under Construction
ذ PROJECT UNDER Barwa Real Estate Group has recently signed agreements and commenced construction on 2 new projects in Al Wakra in line with the Group’s initiative to achieve Qatar’s National Vision 2030 to improve the living conditions of all groups in society. These are the Barahat Al Janoub (la
Slide 29: Annexure
SSS BA RWA —
Slide 30: Geographical Distribution of Projects
GEOGRAPHICAL DISTRIBUTION OF PROJECTS In-Progress • Mukaynis Compound Al Huweila Land • Madinat Al Mawater Phase 3 & 4 Ras Laffan West Side labor accommodation • Qatar Schools Package I (Schools 1 to 8) Al Khor Recreation Extension Al Khor Recreation • Madinatna Al Khor Community • Barahat Al Janoub
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 accommodatio
Slide 32: Mixed Use Portfolio (1/2)
MIXED USE PORTFOLIO (1/2) Retail Office Hotel Warehouse Name of Project Nature of Project Residential/Labour (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: Project Status (1/2)
PROJECT STATUS (1/2) MADINAT AL MAWATER – PHASE 3 MUKAYNIS COMPOUND – SALWA SCHOOLS PACKAGE 1 (PPP) (8 schools) Land Area (sq. m.) 339,716 Land Area (sq. m.) 1,179,114 Total land area for 8 schools (sq. m.) 228,349 BUA (sq. m.) 165,631 BUA (sq. m.) 735,091 Total BUA for 8 schools (sq. m.) 106,999 Co
Slide 36: Project Status (2/2)
PROJECT STATUS (2/2) BARAHAT AL JANOUB MADINATNA Land Area (sq. m.) 773,457 Land Area (sq. m.) 1,149,169 BUA (sq. m.) 767,270 BUA (sq. m.) 1,035,536 Construction Start Date Aug-20 Construction Start Date Aug-20 Construction End Date Sept-22 Construction End Date Oct-22
Slide 37: Domestic Land Bank
DOMESTIC LAND BANK OwnedShell Area (‘000 sq. m.) Lusail (Golf) 3,476 Baraha 3 523 Dara B-F 130 Al Khor Zone 7 54 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.) Ba
Slide 38: International Land Bank
INTERNATIONAL LAND BANK Land* Area (‘000 sq. m.) Country Bahrain Bay 12.5 Bahrain Cyprus Land 54.7 Cyprus Marrakech* 9.6 Morocco Fez * 3.1 Morocco Total 79.9 *Includes pre-existing structures
Slide 39: Investor Relation Team
Investor Relation Team +974 44088785 Barwa.Investor@barwa.com.qa www.barwa.com
Barwa Real Estate Company — Q3 2022 Earnings Presentation on 6ix