Barwa Real Estate Co. · QSE:BRES
Barwa Real Estate — Q3 2023 Earnings Presentation
39 slides from Barwa Real Estate's earnings presentation, September 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION September 2023
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 3.6 bn dividend 5.5 mn sq. m. built-up distributed in last 5 09 01 area under operations years Leadership in Net Debt* : Equity of 69% 08 02 affordable housing MAJOR CONTRIBUTOR TO QATAR’S Land Bank of 5.4* mn sq. m. Operating 14,069 residential DEVELOPME
Slide 6: Investment Rationale
INVESTMENT RATIONALE
Slide 7: Investing in Barwa
Investing In Barwa MOVING UP THE VALUE CHAIN PRESENCE ACROSS REAL ESTATE • Moving towards mid to high-mid residential segment in ECOSYSTEM newly developed Lusail city • Barwa selects its product offering in alignment with • Affordable housing solution for families & blue- tangible market demand coll
Slide 8: Barwa Real Estate – Portfolio Overview
BARWA REAL ESTATE– PORTFOLIO OVERVIEW LAND BANK RESIDENTIAL INDUSTRIAL • 5.4 million* sq. m. • More than 448,000 domestic land 14,069 residential sq. m. warehouses & • Around 80,000 sq. m. units & Villas workshops international land COMMERCIAL LABOUR ACCOM. Around 55,000 labour • Around 365,000 sq.
Slide 9: Balanced Portfolio of Assets
BALANCED PORTFOLIO OF ASSETS 9% 5.21% Retail 4.80% 4% 3.87% Offices 3.43% Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 %35 50% Mixed Use Residential Rental yield on total investment properties*** Rental yield on operating properties** Current Mix Forward Mix • Residential assets with labo
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 • Proven developer and operator of a range of measures assets with timely delivery • Routine quality checks at various stages of project life cycle • Barwa was a
Slide 11: Significant Recurring Revenues & Operating Profit
SIGNIFICANT RECURRING REVENUES & OPERATING PROFIT Recurring Income Provides Better Cash Flow Visibility QAR mn 1,600 180% 94% 95% 1,400 93% 93% 96% 160% 1,386 140% 1,200 1,199 120% 1,000 1,098 956 100% 800 870 897 862 80% 762 600 708 663 55% 60% 61% 400 54% 56% 55% 40% 200 20% - 0% Q3 2019 Q3 2020 Q
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 1.00 0.90 35 22 21 0.80 30 0.73 21 0.69 0.70 25 21 0.60 0.60 20 20 0.50 0.46 0.41 0.40 15 0.30 10 16 15 0.20 13 5
Slide 13: Comfortable Liquidity Position, for Prudent Capital Allocation
COMFORTABLE LIQUIDITY POSITION, FOR PRUDENT CAPITAL ALLOCATION Debt Maturity Profile* (QAR Mn) QAR Million Sept-2023 9,252 Debts 16,169 Cash 1,207 Net Debts* 14,962 Total Equity 21,552 1,961 Total Assets 41,038 1,286 1,577 1,614 479 2023 2024 2025 2026 2027 2028 & Key Ratio Sept-2023 Beyond Net Debt
Slide 14: Optimising Shareholder Value
OPTIMISING SHAREHOLDER VALUE 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 Healthy
Slide 15: Enhancing Asset Portfolio
ENHANCING ASSET PORTFOLIO Well established Adding diversity Labour Housing & Residential & Commercial Education Sector Healthcare Sector Logistics In-depth understanding Strict implementation of Govt. allocated QAR 19.2 Govt. allocated QAR 22.7 of the sector to gauge law banning unorganised
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 5.5 mn sq. m. * • Building more (Legtaifiya) Total land bank residential units like The Pearl- Qatar Lusail Da
Slide 17: Qatar Economy
QATAR ECONOMY
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 – 3.05 million as of • Qatar’s natural gas resources are the • Residency for expats by September 2023 (Source: Planning country’s main economic engi
Slide 19: Qatar Real Estate – An Overview
QATAR REAL ESTATE – AN OVERVIEW QATAR REAL ESTATE Residential Sector INDEX • 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 216.60 • Currently
Slide 20: Demand Drivers
DEMAND DRIVERS Qatar’s successful bid for the World Cup has Qatar National Vision 2030 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 : 4 PILLARS OF DEVELOPMENT Infrastruct Real Hospitality ure and Est
Slide 21: Financial Track Record
FINANCIAL TRACK RECORD
Slide 22: Financial Overview
FINANCIAL OVERVIEW (for the period ended 30 Sept 2023) TOTAL INCOME1 & OP. REVENUE2 OPERATING PROFIT3 1). Total Income= Op. 940 Revenue+Finance 1,965 2,004 917 1,814 Lease Inc + Property 1,729 797 sales & 762 1,560 711 construction 1,420 1,353 income + FV 1,239 1,191 1,138 gain/loss on Invst Propert
Slide 23: Q3 2023 Key Highlights
Q3 2023 KEY HIGHLIGHTS 81% Operating Operating Profit op. revenue is from rentals Revenue QAR 940mn QAR 1,353mn 70% 95% QAR 14.96bn Operating Margin of Operating Profits from net Net Debt rental QAR 7.8bn New Operating Projects 17.5% cash Start the operations of Madinatna, dividend for 2022, achieve
Slide 24: Q3 2023 vs Q3 2022 Key Highlights
Q3 2023 vs Q3 2022 KEY HIGHLIGHTS Operating Revenues Operating Profits Consultancy 6% Consultancy 5% Consultancy Consultancy 16% 19% Rental Rental 94% 95% Rental Rental 84% 81% Q3 2022 Q3 2023 Q3 2022 Q3 2023
Slide 25: Balance Sheet & Cash Flow Overview
BALANCE SHEET & CASH FLOW OVERVIEW As at 30 Sept 2023 BALANCE SHEET OVERVIEW CASH FLOW OVERVIEW TOTAL QAR 41,038 mn Others Receivables & 1.2% Prepayments 3.8% 0.7% 2.9% 1.5% Trading 1.2% 0.9% Properties Lease 14.3% liabilities 39.4% Cash & bank balances Obligations Others under Islamic 6.2% finance
Slide 26: Ongoing Projects under Construction
ONGOING PROJECTS under construction PROJECT NAME TIMELINE 2019 2020 2021 2022 2023 2024 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. Madinat Al Mawater Phase Aug-19 Aug-24 3 ONGOING PROJECTS
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: • Barwa Al Doha • Al Khor Community • Energy City • Dara B-F • Al Kharaej Land Barwa Rea
Slide 28: Annexure
ANNEXURE
Slide 29: Geographical Distribution of Projects
GEOGRAPHICAL DISTRIBUTION OF PROJECTS In-Progress Madinat Al Mawater Phase 3 Al Huweila Land Ras Laffan West Side labor accommodation Al Khor Recreation Extension Al Khor Recreation Al Khor Community LAND BANK Shell accommodation Project Lusail Golf Al Khor land Al Khor Extension School site 4 Al
Slide 30: 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 accommodation La
Slide 31: Mixed Use Portfolio (1/2)
MIXED USE PORTFOLIO (1/2) 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 - - -
Slide 32: 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 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 Status (Madinat Al Mawater Phase 3 - Part 1)
PROJECT STATUS (Madinat Al Mawater Phase 3 - Part 1 – Teyseer Service Center) MADINAT AL MAWATER – PHASE 3 – Part 1 – Teyseer Service Center Land Area (sq. m.) 61,605 BUA (sq. m.) 34,948 Construction Start Date Aug - 19 Construction End Date Sep -22
Slide 35: Project Status (Madinat Al Mawater Phase 3 - Part 2)
PROJECT STATUS (Madinat Al Mawater Phase 3 - Part 2 – Other Facilities) Spare Parts Mall Showrooms & Accommodations Premium Showroom MADINAT AL MAWATER – PHASE 3 – Part 2 Other Facilities Land Area (sq. m.) 273,878 BUA (sq. m.) 131,270 Construction Start Date Jul - 20 Construction End Date Aug-24 Hy
Slide 36: Domestic Land Bank
DOMESTIC LAND BANK Owned 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.) Barwa
Slide 37: 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 38: Subsequent Event: Transaction Details – Lusail Golf Land
Subsequent Event: Transaction Details – Lusail Golf Land On 20 July 2023, Barwa Real Estate announced an agreement to sell two land plots in the Lusail area: Barwa Real Estate announced that Lusail Golf Development Company, fully owned by the Barwa Group, has reached an agreement to sell two land pl
Slide 39: Investor Relation Team
Investor Relation Team +974 44088785 Barwa.Investor@barwa.com.qa www.barwa.com
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