Shares tumbled 8.5% after posting a quarterly net loss of $11.8m
Shares tumbled 8.5% after posting a quarterly net loss of
Qatar's largest listed
property developer, Barwa Real Estate, swung to a second-quarter net loss,
according to Reuters calculations.
The company posted a quarterly net loss of QAR42.9
million ($11.8 million) on Thursday compared to a profit of QAR40.6 million in the year-earlier period, Reuters calculated using first-half figures
and previous reports.
Barwa made a profit of QAR222.2 million in the
first half of 2014, up from QAR199.2 million in the corresponding period of
2013, it said in a statement.
The developer said it was working on selling one of
its land assets in a medical and educational project in the city of Lusail to
the government's Higher Committee for Projects and Heritage. It did not provide
a value of the asset.
Some property firms in Qatar are struggling even as
the country throws billions of dollars of its natural gas wealth into building
infrastructure in preparation to host the 2022 soccer World Cup.
Barwa, 45 percent owned by Qatari Diar, the real
estate arm of the Gulf state's sovereign wealth fund, notched up liabilities of
about QAR37 billion at the end of 2012 because of overexpansion.
Qatari Diar stepped in with financial aid last
year, agreeing to buy some of Barwa's assets for $7.1 billion. In June this
year, Barwa said it was selling a 95 percent stake in Barwa Commercial Avenue
Co to Qatari Diar for QAR9.0 billion.
Barwa has properties in France, Switzerland and the
United Kingdom and focuses on retail, office, hospitality and residential
Shares in the company tumbled 8.5 percent in
morning trade after the earnings announcement.