Sunday, Aug 14, 2011
(Adds 2Q net profit in paragraph 3; updates share price in paragraph 4; background in paragraphs 5-7.)
DUBAI (Zawya Dow Jones)--Qatari property developer Barwa Real Estate Co. Sunday reported a first-half net profit of 752.5 million Qatari riyals ($206.7 million), compared with QAR498.4 million a year earlier.
In a brief statement to the Doha bourse, the developer said first-half earnings per share stood at QAR1.93 versus QAR1.28 for the same period in 2010. Barwa didn't give a reason for the rise in earnings.
According to Zawya Dow Jones calculations second-quarter net profit amounted to QAR204.5 million. Barwa's QAR548 million first-quarter 2011 figure is net profit after unusual items, according to Zawya.com data. The firm made a net profit of QAR288.9 million in the year-earlier quarter, according to Zawya.com.
Shares in the property group were last trading down 1.4% at QAR28.40 in a slightly negative overall market.
Qatar's property market was hit hard by the global economic slowdown in 2008 and 2009, with real-estate prices and rents of freehold property dropping as much as 40% from their peaks in mid-2008, leading to an oversupply situation that continues to weigh on the market.
Barwa Group, 45% owned by Qatar's government, is a conglomerate with over two-dozen subsidiaries ranging from real estate to fund management to banking, and has a large portfolio of properties overseas in countries including France, Egypt and the United Arab Emirates.
Barwa Real Estate is by far the biggest company in the conglomerate. In April, the developer laid off around 12% of its staff. In June, Barwa reached an agreement with Qatar Airways to lease its Barwa City development, which has 8000 residential units, to the flag carrier.
-By Alex Delmar-Morgan, Dow Jones Newswires; +974 6659 9818; alex.delmar-morgan@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
14-08-11 0945GMT
