Barwa Real Estate records QR374m net consolidated profits in 1st half 2009

Despite the turmoil seen in many international real estate markets, net profits for the first half of 2009 grew by 35% compared to QR277m of the same period in 2008.

Increase in net profits positively reflected on earnings per share which rose to QR1.43 compared to QR1.13 the figure recorded in 2008.

Total assets of the Company have risen to QR27.5bn, a 12% rise compared to QR24.2bn the same period in 2008. Equity rights have also increased to QR5.1, a 4% rise compared to QR4.9bn the same period previous year.

Growth in net profits resulted from concluding sale deals to a number of land plots and properties owned by the Company and exiting from some affiliates and subsidiaries in line with the Company's strategy.

Re-evaluation of some properties under construction, in line with amendments made to international standards of financial reports, contributed also to remarkable increase in earnings.

Furthermore, these profits have been recorded despite the fact that the Company retained reserves to mitigate depreciation in some investments and to face increase in operational expenses. Such increase has resulted from the Company's tapping of many new business activities to diversify its income resources and reinforce its cash flows to be in line with the Company's short-term and long-term strategies.

On the other hand, Mr. Majid Al Badr, Acting President of Business Development - Qatar, commented:

"Financial results recorded during the first half of 2009 show the increasingly improving performance of the company. Furthermore, they show the Company's management's keenness to expand its activities, diversify its income resources and restructure some of its subsidiaries and affiliates. Despite the turmoil seen in many international real estate markets, the Company is in its way, supported by its local and global partners, to achieve its objectives."

Construction works are under progress in many of the company's projects, including Commercial District (Barwa Ain Khalid), Barwa Village, Barwa Al Sadd, Barwa City and other projects that aim to serve the local community.

Company's performance, despite challenges posed by global financial crisis, shows the strength and adequacy of Barwa financial position. Barwa remains confident of future prospects, and moving ahead to achieve its goals of growth and success in recording added value to shareholders.