"Doha–13 March 2013: Barwa Real Estate Group, one of the leading real estate and investment companies in Qatar, announced yesterday its financial results for the financial year ended 31 December 2012. The group's results showed a net profit of QR 1,171 million, with QR 3.01 per share for the year 2012, compared to QR 1,416 million and QR 3.64 profit per share for the year 2011.
The positive financial results reflect the group's adopted strategy, which puts particular emphasis on improving the growth of its operations and reducing its costs and expenses which is represented in reducing general and operating costs by 51% in addition to increasing both cash and operating revenues. The rental income increased 18% to reach QR 741 million for the year 2012, compared to QR 623 million for the year 2011. The group was keen to identify appropriate investment opportunities and methods to obtain target returns through selling or operating those investments. All of which is achieved without deviating from the group strategy, which aims to maximize the return on shareholders and increase cash flow in a sustainable and continuous manner. Barwa Real Estate succeeded in selling one of its real estate portfolios in Europe and one of its hotels in Qatar. Additionally, the group sold a large real estate investment in Al Khor. Those transactions had resulted in reducing the overall obligations of the group by 30% which led to reducing its financing costs by 74% compared to the year 2011.
Barwa Real Estate Group is now focusing on the completion of its projects under development. The group is seizing the right investment opportunities which align with its strategy of sustainable growth. In February 2013, the group signed a sale agreement of its investments in Egypt, a step which will positively reflect on the reduction of both financing debts and financing costs. This will have a great positive impact on the group’s current results and future policies.
The Board of Directors proposed a cash dividend of 10% from the outstanding share capital amounting to QR 1 per share, to be put forward during the Ordinary General Assembly Meeting."