Barwa Real Estate Company Q.P.S.C. (BRES) Q4 FY2025 Earnings Call Transcript & Summary

Hello, and welcome to the Barwa Real Estate Conference Call. Please note that this call is being recorded. [Operator Instructions] Now I would like to hand the call over to Shahan, you may begin.

Thank you, Angela, and hello, everyone. I want to welcome you to Barwa's Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call. So on this call from management, we have the group CFO, Tamer Elsayed. So as usual, we will conduct this call with first management reviewing the company's results followed by a Q&A session. I will turn the call over now to Tamer. Please go ahead.

Thank you. [Foreign Language] Good day, everyone, and welcome to Barwa Real Estate Year-End 2025 Post Results Conference Call. I am Tamer Elsayed, the Group Chief Financial Officer; and it's pleasure to be with you today to discuss our performance and outlook. Let me begin by thanking QNB Financial Services for hosting today's call on behalf of Barwa Real Estate. Before we proceed, I'd like to remind you that today's discussion may include forward-looking statements. These are based on current assumptions and are subject to risks and uncertainties. Actual results may differ, and Barwa assumes no obligation to update these statements in light of new information or future events. We announced our financial year 2021 financial results on 9th of February 2026. Both the financial statements and our investor presentation are available in the Investor Relations section of our website. For those less familiar with Barwa Real Estate, we are one of the Qatar's leading real estate developers with an extensive diversified portfolio. Our operational portfolio covers approximately 5.6 million square meters of built-up area. This includes over 69,000 residential units and labor rooms as well as warehouses, retail showrooms, offices and hospitality assets. This income generating assets continue to be the backbone of our business, contributing around 80% of our operating revenue and 92% of operating profit, as highlighted in our investor material. In addition, Barwa maintains a strategic land bank of around 1.9 million square meters, including 1.8 million of which is located in Qatar. Including within this, we own approximately 829,000 square meters with the balance under leasehold arrangements. Our strategy moving forward is to selectively monetize this land bank, whether through development or sale based on market conditions and value certain potential. Let me now turn to our financial performance for the year 2025. Our operating revenue reached about QAR 1.850 billion compared to QAR 1.823 billion in financial year 2024. Operating profit increased to QAR 1.283 billion, up from QAR 1.248 billion in the previous year. For the net profit attributable to equity holders remained stable at QAR 1.243 billion, above the QAR 1.236 billion reported in 2024. For our balance sheet, Barwa continues to maintain a strong financial position with net debt at QAR 11.227 billion, resulting in a net debt-to-equity ratio of 0.49. Our robust liquidity and solid balance sheet provides us with flexibility to support current operations while pursuing future growth initiatives. We are also actively working on refinancing selected facilities to further optimize liquidity, extend the maturities and strengthen our cash flow outlook. With this, we are ready to take your questions. Thank you for your time. And I will now hand the call over to the moderator from QNB Financial Services to begin question-and-answer session. Thank you.

Angela, we can go ahead and go to a Q&A session, please.

[Operator Instructions] And your first question comes from the line of Adnan Muqeem, Al Rayan Investment.

I have a question regarding the financial assets at fair value through OCI. So there is a line item in balance sheet, which is like QAR 816 million. And when I go to its notes, it relates to a quoted and unquoted investments. So could you clarify like what are these investments? Are these are private equity investment? And what is the return on them?

Thank you for your question. These are short-term investment through investment managers. It is a portfolio between debt investments and equity investments. However, as I mentioned, all are short term, less than 1 year. This is to enhance our cash flow management.

And these are like invested in public equities or private investment, if you could clarify that? And how you record the return of these investment in P&L?

The return is part of our other income for now. It's investment income. And again, as I said, it's a mix between debt investments, equity investments and some funds.

[Operator Instructions] There are no further questions. I will now turn the call back over to Shahan for some closing remarks.

Okay. So if there are no more questions, we can wrap up this call. I would like to thank Tamer for giving us an update for 2025, and we will pick this up again next quarter. Thank you.

Thanks, everyone. [Foreign Language]

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.