Barwa Real Estate Co. · QSE:BRES
Barwa Real Estate — Investor Presentation (December 2021)
40 slides from Barwa Real Estate's investor presentation, December 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION December 2021
Slide 2: Disclaimer
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,
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. Our Vision: To be a reliable Real Estate company, recognized for its strong values
Slide 5: Major Contributor to Qatar's Development
MAJOR CONTRIBUTOR TO QATAR’S DEVELOPMENT Operating 7,289 3.6 mn sq. m. built-up Leadership in affordable residential units and area under operations housing around 38,000 labour rooms Balanced product mix ~ 85% Op. Revenue2 is Positive Cash Profits1 resulting in stable rental recurring rentals since
Slide 6: Investment Rationale
INVESTMENT RATIONALE
Slide 7: Proxy to Qatar's Real Estate Market
Investing In Barwa PRESENCE ACROSS REAL ESTATE MOVING UP THE 1 6 ECOSYSTEM VALUE CHAIN • Moving towards mid to high-mid residential • Affordable housing solution for segment in newly developed Lusail city families & blue-collared workers • Barwa selects its product offering in alignment • Commercial
Slide 8: Barwa Real Estate – Portfolio Overview
BARWA REAL ESTATE– PORTFOLIO OVERVIEW RESIDENTIAL COMMERCIAL INDUSTRIAL LABOUR ACCOM. LAND BANK • More than 288,000 sq. m. retail (shopping & • 7,289 residential restaurant) and • More than 445,000 • 5.5 million sq. m. units & Villas commercial space sq. m. warehouses & • Around 38,000 domestic land
Slide 9: Balanced Portfolio of Assets
BALANCED PORTFOLIO OF ASSETS Barwa’s performance trajectory has remained stable over the past quarters 110.00 10.0% 100.00 7.4% 8.0% 90.00 92.90 6.0% 80.00 3.5%4.0% 70.00 67.20 60.00 2.0% 50.00 0.0% Q2-2017 Q1-2018 Q4-2018 Q3-2019 Q2-2020 Q1-2021 Q4-2021 KPMG residential rental index** Rental yield
Slide 10: Inherent Strength built over time resulted in strong Brand Preference
Inherent Strength built over time resulted in strong Brand Preference… Timeliness Quality • Proven developer and operator of a range of assets with • Quality control is paramount despite tight cost measures timely delivery • Routine quality checks at various stages of project life • Barwa was able t
Slide 11: Significant Recurring Revenues & Operating Profit
SIGNIFICANT RECURRING REVENUES & OPERATING PROFIT RECURRING INCOME PROVIDES BETTER CASH FLOW VISIBILITY QAR mn 2,000 95% 180% 1,800 97% 160% 1,885 1,600 82% 94% 89% 140% 3.6 million sq. m. BUA# 1,400 120% under operation 1,200 1,334 1,345 1,244 1,271 100% 1,000 1,180 72% Rental assets spread acr
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 *Recurring cash profits have been generated Timely sale of properties have adequately consistently, providing sufficient liquidity supported liquidity 40 1.00 EBTDA* 0.90 35 0.80
Slide 13: Comfortable Liquidity Position, for Prudent Capital Allocation
COMFORTABLE LIQUIDITY POSITION, FOR PRUDENT CAPITAL ALLOCATION Comfortable Debt Maturity Profile (QAR Mn) QAR Million Dec-2021 Debt 14,063 4,879 Cash 1,367 Net Debt 12,696 2,252 2,186 2,182 1,411 1,153 Total Equity 21,043 Total Assets 37,513 2022 2023 2024 2025 2026 2027 & Beyond Liquidity – QAR 1,8
Slide 14: Optimising Shareholder Value
OPTIMISING SHAREHOLDER VALUE Consistency in Cash Profits, Low Leverage has given Consistent Shareholder Returns QAR Mn 8% 61% 8% 57% 57% 973 973 973 7% 856 856 51% 50% 51% 778 778 6% 6% 584 6% 5% 5% 40% 486 4% 31% 28% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 20
Slide 15: Enhancing Asset Portfolio
ENHANCING ASSET PORTFOLIO 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
Slide 16: Premiumisation to Drive Sustained Growth & Better Profitability
PREMIUMISATION TO DRIVE SUSTAINED GROWTH & BETTER PROFITABILITY FREE HOLD ZONES EXPANSION 2004 (3 Zones) 2019 (10 Zones) HOW IT BENEFITS BARWA? District West Bay (Legtaifiya) Land bank The Pearl- Qatar 5.5 mn sq. m. 98% in Qatar Al Khor Resort 2% Abroad Rawdat Al Jahaniyah Qatar land bank Al Qassar
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 – 2.67 million • Qatar’s natural gas resources are the • Permanent Residency for as of December 2021 country’s main economic engine and expats by pu
Slide 19: Qatar Real Estate – An Overview
QATAR REAL ESTATE – AN OVERVIEW Residential Sector QATAR REAL ESTATE 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 • Currently facing
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 catalyst Qatar National Vision 2030 to accelerate various projects envisaged by the government in area of : 4 PILLARS OF DEVELOPMENT FIFA 2022 • Infrastructure and utilities
Slide 21: Financial Track Record
FINANCIAL TRACK RECORD
Slide 22: Financial Overview
FINANCIAL OVERVIEW for the year ended 31 December) In QAR Million TOTAL INCOME1 & OP. REVENUE2 OPERATING PROFIT3 2,918 2,671 2,714 1,423 2,572 2,619 2,223 1,139 1,080 1,754 965 970 1,609 1,637 1,536 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Operating Revenue Total Income Adjusted EBITDA4 PAT
Slide 23: 2021 Key Highlights
2021 KEY HIGHLIGHTS 95% op. revenue is from Operating Revenue QAR Operating Profit QAR rentals 2,223 mn 1,423 mn 95% of Operating Net Debt at QAR 12.69 Operating Margin 64% bn Profits from net rental Distributed a 12.5% Leasing continued in all cash dividend for 2020, Liquidity – QAR 1.9 bn phases o
Slide 24: 2021 vs 2020 Key Highlights
2021 vs 2020 KEY HIGHLIGHTS Key financial indicators 2021 2020 % Change Operating Revenue 2,223 1,637 36% Operating Profits 1,423 1,080 32% Operating Profits Margin 64% 66% -3% EBITDA 1,438 1,599 -10% Depreciation & Amortization (38) (57) -33% EBIT 1,400 1,542 -9% Finance Cost (Net) (266) (300) -11%
Slide 25: 2021 vs 2020 Key Highlights
2021 vs 2020 KEY HIGHLIGHTS Operating Revenues Operating Profits Consultancy Consultancy Consultancy 3% 5% Consultancy 15% 18% Rental Rental Rental 97% 95% Rental 82% 85% 2020 2021 2020 2021
Slide 26: Balance Sheet & Cash Flow Overview
BALANCE SHEET & CASH FLOW OVERVIEW As at 31 December 2021 BALANCE SHEET OVERVIEW CASH FLOW OVERVIEW TOTAL QAR 37,513 mn 0.3% 0.9% Investments 0.9% in Associates Others 3.2% Receivables 0.4% & 1.9% Prepayments 37.5% Lease Intangible 3.6% liabilities Assets Trading 2.7% 4.6% Properties Obligations 1.5
Slide 27: Ongoing Projects
ONGOING PROJECTS PROJECT NAME TIMELINE 2017 2018 2019 2020 2021 2022 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. Mukaynis Compound Dec-17 Nov-21 1.1 Zone 3 & additional works Dec-17 Nov-21 2. Madinat Al Mawater Phase 3 Aug-19 Oct-22 3. Schools Package 1 (P
Slide 28: 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 29: Project Under Construction
PROJECT UNDER CONSTRUCTION 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 J
Slide 30: Annexure
ANNEXURE
Slide 31: Geographical Distribution of Projects
GEOGRAPHICAL DISTRIBUTION OF PROJECTS Geographical distribution of the projects In-Progress Mukaynis Compound Al Huweila Land Ras Laffan West Side labor accommodation Madinat Al Mawater Phase 3 & 4 Al Khor Recreation Extension Qatar Schools Package I (Schools 1 to 8) Al Khor Recreation Al Khor
Slide 32: 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 33: 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 Industrial - - - - 184.8 and Workshop Barwa Al Sadd Mix Use 261 4.2 41.8 232 - Barwa Village Mix Use 457 106.2 - - -
Slide 34: 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 35: International Portfolio
INTERNATIONAL PORTFOLIO Office Name of Project Nature of Project Hotel (no. of rooms) (‘000 sq. m.) Cavendish Office 1.0 North Row Office 2.2
Slide 36: 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 37: 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 Apr-22 Construction End Date Apr-22
Slide 38: 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 39: 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 40: Investor Relation Team
Investor Relation Team Contact : +974 44088785 Email : Barwa.Investor@barwa.com.qa
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