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Sun 1 May 2011 05:03 PM

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Qatar developer Barwa sees Q1 net profit surge on rentals

Barwa posts first-quarter net profit of QR549.48 riyals, aided by income from rents

Qatar developer Barwa sees Q1 net profit surge on rentals
PROFIT RISE: Barwa had first-quarter net profit of $150.6m, compared with profit of $57.58m in the prior-year period

Barwa
Real Estate's quarterly profit more than doubled, as revenues surged on
increased rentals and income from banking activities, the developer said in a
statement on Sunday.

Barwa
had first-quarter net profit of QR548.49 ($150.6m), compared with profit of QR209.58m
in the prior-year period.

Revenues
for the quarter increased, as rental income surged to QR169.2m compared with QR39.9m
in the year-before period.

Income
from banking activities grew to QR127.89m.

The
company also gained from the sale of a subsidiary for QR410.8m, it said in a
statement to the Doha bourse.

Total
assets increased to QR74.5bn.

The
Qatari developer laid off nearly 90 employees last month amid a restructuring
move being pushed through by its new chief executive.

Barwa,
like other Gulf Arab developers, was hit hard by the region-wide real estate
slump.

Qatar
helped key property firms weather the global crisis by pushing through
defensive mergers and using its sovereign fund to invest in them.

Qatari
Diar, the property arm of the Qatar Investment Authority, owns a 45 percent
stake in Barwa.