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

Hello, and welcome to Barwa Real Estate. Please note that this call is being recorded. Thank you. [Operator Instructions] I'd like to hand over the call to the moderator, Shahan. You may now begin.

Thank you, and hello, everyone. I want to welcome you to Barwa Real Estate Second Quarter and First Half 2026 Financial Results Conference Call. So on this call from management, we have Tamer Elsayed, the company's Group CFO. 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 so much. [Foreign Language] Good day, everyone, and welcome to Barwa Real Estate, 30 June, 2026 Post Results Conference Call. I'm Tamer Elsayed, the Group Chief Financial Officer of Barwa Real Estate, and I am pleased to be with you today to discuss our performance for the first half 2026 and our outlook for the period ahead. Let me begin by thanking QNB Financial Services for hosting today's call on behalf of Barwa Real Estate. Before we proceed, I would like to remind you that today's discussion may include forward-looking statements. These statements are based on current assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Barwa undertakes no obligation to update these statements as a result of new information or future events. We announced our financial statements for the first half 2026 on July 28, 2026. And both the financial statements and the investor presentation are available on the Investor Relations section of our website. Barwa is one of Qatar's leading real estate developers with a large, diversified portfolio spanning residential, commercial, industrial and hospitality assets. Our operational portfolio currently covers approximately 5.6 million square meters of built-up area. This includes more than 69,000 residential units and labor accommodation rooms in addition to warehouses, retail showrooms, office properties and hospitality assets. In addition, Barwa maintains a strategic land bank of around 1.9 million square meters, of which approximately 1.8 million square meters is located in Qatar. Within this land bank, we directly owned around 820,000 square meters with the remaining balance held under leasehold arrangements. Looking ahead, our strategy is to selectively monetize this land bank either through development or sale, depending on the market conditions and value creation opportunities. Turning now to our financial performance for the first half 2026. Operating revenues from rental and services increased to QAR 955 million compared to QAR 899 million in the first half 2025. Net profit attributable to equity holders stood at QAR 459 million compared to QAR 560 million reported in the first half 2025. Relating to our balance sheet strength, we continue to maintain a strong financial position with a net debt of QAR 11.78 billion and a net debt-to-equity ratio of 0.52. Our solid balance sheet, coupled with robust liquidity provides us with the flexibility to support ongoing operations while pursuing disciplined growth initiatives. In parallel, we are actively working on refinancing selected facilities to further optimize liquidity, extend debt maturities and enhance our cash flow profile. With that, I would like to thank you for your continued interest and support. We are now happy to take your questions, and I will hand the call over to our moderator from QNB Financial Services to begin the Q&A session. Thank you.

[Operator Instructions] We will take our first question from the line of Ejayan Al-ahbabi of Al Rayan Investment.

[Foreign Language] This is Ejayan Al-ahbabi from Al Rayan Investment. I want to congratulate you on a good set of results for the first half of the year. I just want to ask about your rental income. It seems to be increasing for the first half of '26. How sustainable is this increase? Do we expect it to continue throughout the year?

Well, the rental income is quite -- the increase is quite sustainable because it's coming from the increase in the occupancy rates in most of our projects, mainly from Madinatna and Barahat Al Janoub Neighborhood. So it's a recurring income, and it should continue with us in the upcoming years [Foreign Language].