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Barwa Q3 profit jumps

Barwa Real Estate, Qatar’s largest listed property developer, said third-quarter net profit more than doubled, as gains booked on the fair value of investments offset higher operating and finance costs.

Barwa, which is eyeing asset sales worth $4.4 billion to pay down loans, made a net profit of QR185.4 million ($50.92 million)in the third quarter, compared with QR80.8 million in the same period of 2011, it said in a bourse filing on Tuesday.

The profit was boosted by net fair value gain taken on investment properties, which soared to QR125.3 million from just QR20.4 million in the prior year period.

This offset increase in operating expenses which nearly doubled to QR119.8 million in the quarter and finance costs that grew three times to QR125 million.

Barwa is 45-per cent owned by Qatari Diar, the property arm of the country’s sovereign wealth fund, the Qatar Investment Authority. It has properties in France, Switzerland and the United Kingdom and focuses on retail, office, hospitality and residential developments.

Total revenue and gains for the quarter was QR527 million compared with QR359.7 million a year ago, the company’s statement showed.

Earlier this month, Barwa said it plans to sell assets worth QR16 billion ($4.4 billion) in Qatar and Egypt to pay down loans. The assets being sold include land in the Gulf Arab state as well as the Barwa New Cairo project in Egypt and will be reflected in fourth-quarter results.