Mazaya Real Estate Development Q.P.S.C. (MRDS) Earnings Call Transcript & Summary

Hello, ladies and gentlemen. This is Zaid Al-Nafoosi from QNB Financial Services. I would like to welcome everyone to Mazaya Real Estate Development Company Second Quarter 2020 Financial Results Conference Call. It's my pleasure to introduce from Mazaya Real Estate Development Company, Mr. Joseph Al Hamod, Senior Manager of Finance and Administration; Mr. Saeed Al Marri. He is Senior Manager of Marketing. We also have on the call Mr. Mohammed Al Qadi. He's the Manager of Communications and Investor Relations Officer. We will start this call with a presentation on the company's performance followed by a question-and-answer session. And now I will hand over the call to Mr. Joseph Al Hamod to get us started. Please go ahead, sir.

[Foreign Language] Thank you, Zaid, for the introduction. Today, we're hosting the Q2 Investor Relation call related to the announcements that was made by Mazaya. We'll start initially on the latest news that you've been -- you've heard in the market. Mazaya Board has looked at a couple of projects that were announced. The first one is our Marina Mall for which have been replaced by the concept of a mall. The land remains as is. Just to give a brief on this, it's BOT that was entered by Mazaya along with Qatar Foundation. The company has looked into a new structure for the investment, out of which we had announced earlier that the structure will be transferred into a mix of commercial spaces facing the Marina, along with some residential units to be built. This project has already approved -- has already received the approval from Qatar Foundation as being the owner of the land. Now we are in process of finalizing the concept for the approval of the other authorities, including the Lusail. This project includes of around 33,000 meter square of retail area to be facing this sea. And in a concept of having inside and outside, we're benefiting from the location, the view; and definitely, we are considering also the weather of Doha to have a more attractive retail area and including some SMB for -- to serve the Lusail along and all the vicinity around. This also includes around 200 apartments that will be built on -- around [ G+7 ] to [ G+8] that will be overlooking the Marina also, and we're considering a lifestyle to be built into these apartments. Aside from the Marina also, we have seen that another announcement have been made that Mazaya is looking for a strategic partnership along with Ariane development. Ariane has already announced on the city in Mesaimeer, out of which Mazaya is taking part of that development, and we are in process of formalizing the requirement mainly when it comes to the approval. Possibly, you would see some further announcements with more details related to the matter. And if required, which we are still considering with our legal advisers, if required for any general assembly, we'll be reaching to that stage for the approval of such. Ariane City is expected to come into leasing phase around the second half of 2021, and it is a mix of residential and some commercial spaces that include some other services, hospitality and other kinds of entertainment. This transaction has a -- this transaction has already a guarantee, if I may say, for the income return, where a structure has been made between Mazaya and Ariane to confirm that a return being guaranteed for the 5 years starting from the first year of operation. Aside from this, our normal Sidra and Tala Village -- Sidra Village, I mean, and Tala Residence, there is nothing much to disclose about. They are already up and running. They are leased to Qatar Foundation as we all know. Sidra has lapped 1 year plus, and the Tala already in its eighth year and all progress is going straightforward with these 2 assets. By this, we will enter into a brief on the financial results that we had announced, which I believe you have looked at and we have received, currently is in hand. We have seen that Mazaya has executed the sale of the Gloria Hotel, out of which we had recorded a loss from that sale, which was reflected into the income statement for the period. And this had a dropped down the profit from the previous year of QAR 13-plus million into QAR 6 plus -- QAR 6.5 million. And the main effect, as you can see, is coming from the loss of executing the sale of Gloria. We had earlier announced on this. We had closed this asset -- the sale of this asset at the time of a difficult time for any transactions taking place in the market and at the time of the peak of the COVID-19. So out of which, you can see also another material effect -- not -- another major effect that's shown in the financials. As you can see, there is a saving on the finance cost related as the fund costs have dropped from QAR 23-plus million into the QAR 17 million. So the saving is due to the restructuring of the debt that took place as announced earlier, which was point of question into the previous AGM. I mean, Mazaya had already restructured the debt of the company, which have led to the saving, as you've seen reflected into the financial statement. By this, we have closed the quarter 2 financial for the year 2020 and to a QAR 6.7 million compared to the QAR 13.6 million as seen before. Also, this has -- this is reflected on the total assets and the movement into the balance sheet as seen in [indiscernible], where there is a minor change into the total assets for the drop, which is related, as we have said, to the execution of sale of Gloria Hotel. Out of which, there is other material transaction that took place during this quarter. And we will be happy to take your questions, if any, for any clarification. Please go ahead.

[Operator Instructions] It appears there are no questions at this time. Mr. Al-Nafoosi, I would like to turn the call back to you for any additional or closing remarks.

Thank you. Well, there are no questions. Then I would like to thank Mr. Joseph Al Hamod, Mr. Saeed Al Marri, Mr. Mohammed Al Qadi and also our operator, Anita, and everyone participated on this call. Please do reach out to us at QNB Financial Services or Mazaya Real Estate Development teams if you have any further questions or inquiries. Thank you very much for attending the call, and please stay safe. Goodbye.

Thank you.