BARWA Real Estate announces QR299m Q3 2008 profit

Stock markets are on a roller coaster ride but mostly in a spiral. Business sentiment is at its nadir and investment portfolios have been hit hard.

Global economy is in retreat and now there is talk about a global recession which may turn to a depression.

Despite the global economic hardships BARWA Real Estate Company registered increase in growth rate and continuation in profitability.

The third quarter net profit reached QR299m compared to QR326m recorded over the same period during 2007.

The reason for the slight decline is due to postponing the sale of investment opportunities, which are expected to be concluded whenever the market conditions are more favorable.

On 30 September 2008, BARWA's total assets had increased 63% to QR25.8bn from QR15.8bn in 31 December 2007.

The recorded assets are the direct results of geographic expansion, the surge in the value of the company's projects and executive management decisions aimed at diversifying investment portfolios and mitigating risks.

The nature of BARWA's core business is real estate development that usually takes a period of 4 years for completion; after which the core value of the project is recognized.

The objective of BARWA, therefore, is to sustain stable and predicted cash flow generated by rental activities that shall represent 60% of the company's operating cash flow.

Meanwhile, to add value and maximize wealth, BARWA engages in investment activities including investment property and held for trade that comply with Islamic Sharia.

Drawing strength from the confidence placed in the company by its investors and shareholders, BARWA Board of Directors have taken major strides towards achieving the well planned company targets set based on a clear strategic direction.

The strong performance and record growth, achieved by the company reveal clearly the route BARWA is taking and demonstrating positive business momentum.

The company has further strengthened its market position through continued focus on operational excellence and its profitability shows a healthy development.

BARWA remains confident of future prospects, with projects running according to their set plans.

The company continues to retain the support of its partners, in particular government institutions, consultants, financial corporations and construction and contracting companies.