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Mon 5 Mar 2012 06:15 PM

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Qatar's Barwa says 2011 profits fell by 8.9%

Real estate giant posts full-year net profit of $354.3m on better property sales

Qatar's Barwa says 2011 profits fell by 8.9%
An artists rendering of the $659m Barwa Al Sadd project in Doha

Qatar's Barwa Real Estate Group said on Monday its 2011 full-year net profit fell by 8.9 percent to QR1.29bn ($354.35m), compared to the previous year.

The company made gains of QR556m in 2011 from the sale of properties, much higher than the QR159m it made in 2010, it said in a statement.

It also saw an increase in gains from the sale of subsidiaries by QR404m in 2011.

Hitmi Al-Hitmi, chairman, said the results reflected the Group's newly adopted strategy, which puts particular emphasis on increasing cash revenues and sustainable growth.

He said the Group had significantly reduced its costs and expenses while sustaining the growth of its operating income, hinting at the 90 jobs cut back in April 2011.

"The growth and achievements of Barwa is founded upon the growth and development of our nation, made possible through our visionary leadership," he said.

He added that the company would continue to pursue "our aspiration to be one of the most successful real estate development and investment companies in the world".

In 2011, the Group signed a sales agreement with Qatar Petroleum to sell its Barwa Financial District project, resulting in a gain that was partially realised during the fourth quarter of last year.

The Group said its balance sheet also showed a significant growth in projects under development.

Barwa Real Estate said in January that a QR2.4bn ($659m) residential and commercial development in Doha would be ready for handover in the second quarter of this year.

The company said over 99 percent of its Barwa Al Sadd project was now complete.

Barwa added that it has leased all housing units and two of three office towers on the project.