Barwa Real Estate Q P S C : 2nd Quarter Financial Statements 2023

BARWA REAL ESTATE COMPANY Q.P.S.C.

Barwa Real Estate Company Q.P.S.C. presents below an extract of the interim condensed consolidated financial statements of the Group for the period ended 30 June 2023. Ernst & Young - Qatar has issued a review report, copy of which is

presented below, on the interim condensed consolidated financial statements from which extract has been delivered. The completed set of the interim condensed consolidated financial statements and the review report are available on the company's

websitewww.barwa.com.qa

INDEPENDENT AUDITOR'S REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF BARWA REAL ESTATE COMPANY Q.P.S.C.

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX
MONTHS ENDED 30 JUNE 2023
	30 June 2023	30 June
	2022
	(Reviewed)	(Reviewed)
	QR'000	QR'000
Rental income	760,997	799,719

IN TER IM C ON S OLID A TED S TA TEM EN T OF C A S H F LOWS F OR THE S IX
M ON THS EN D ED 3 0 J UN E 2 0 2 3
3 0 J une	3 0 June
2 0 2 3	2 0 2 2
( R e v ie w e d )	(R eviewed )
QR '0 0 0	QR'0 0 0
OP ER A TIN G A C TIV ITIES

Introduction We have reviewed the accompanying interim condensed consolidated financial statements of Barwa Real Estate Company Q.P.S.C. (the 'Company') and its subsidiaries (together referred as the "Group") as at 30 June 2023, comprising of the interim consolidated statement of financial position as at 30 June 2023 and the related interim consolidated statement of profit and loss, interim consolidated statement of comprehensive income, interim consolidated statement of changes in equity and interim consolidated statement of cash flows for the six months period then ended and the related explanatory notes.

The Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with IAS 34 Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information

Rental operation expenses	(131,137)	(221,630)
Net rental income	629,860	578,089
Finance lease income	-	80
Net rental and finance lease income	629,860	578,169
Income from consultancy and other services	160,964	131,959
Consulting operation and other services expenses	(130,355)	(109,326)
Net consulting and other services income	30,609	22,633
Profit on sale of property and construction services	651	31,842
Net fair value gain on investment properties	311,323	346,907
Share of results of associates	(16,229)	(5,468)
Gain from sale of non-current asset held for sale	19,119	57,973
Gain from deemed disposal of investment in an associate	57,355	-
General and administrative expenses	(101,061)	(105,506)
Net impairment losses	(9,914)	(204,977)
Other income - net	14,891	20,889
Operating profit before finance cost, depreciation, amortisation and	936,604	742,462
income tax
Finance income	21,207	7,512
Finance cost	(389,680)	(191,478)
Net finance cost	(368,473)	(183,966)
Profit before depreciation, amortisation and income tax	568,131	558,496
Depreciation	(6,959)	(6,748)
Amortisation of right-of-use assets	(2,039)	(2,039)

Net pro fit fo r the perio d A djus tm ents fo r:

Finance co s t Unwinding o f deferred finance co s t Finance inco m e Net fair value gain o n inves tm ent pro perties Depreciatio n Am o rtis atio n o f right-o f-use as s ets Share o f res ults o f as s o cia tes Net im pairm ent lo s s es P ro vis io n fo r end o f s ervice benefit Finance leas e inco m e P ro vis io n fo r inco m e tax Gain o n deem ed dis po s al o f an as s o ciate Gain fro m s ale o f no n-currentas s et held fo r s ale Other inco m e Ope ra ting g a in be fo re wo rking c a pita l c ha ng e s Changes in wo rking capital: Change in receivables and prepaym ents Change in trading pro perties Change in finance leas e receiva bles

Change in am o unts due fro m and due to related parties Change in pro vis io ns Change in payables and accruals C A S H F LOWS F R OM / (US ED IN ) OP ER A TIN G A C TIVITIES

5 5 3 ,	6 6 8	54 5,2	6 0
3 7 6 , 9 5 4	175,8	0 9
12 , 7 2 6	15,6	6 9
( 2 1, 2 0 7 )	(7,512 )
( 3 11,	3 2 3 )	(3 4 6 ,9 0 7)
16 ,	4 0 9	16 ,0 79
2 ,	0 3 9	2 ,0	3 9
16 ,	2 2 9	5,4	6 8
9 , 9 14	2 0 4 ,9 77
10 , 9 8 1	12 ,59 2
	-	(8 0 )
4	, 15 7	3 ,74 5
( 5 7 , 3 5 5 )		-
( 19	, 119 )	(57,9 73 )
( 14	, 8 9 1)	(2 0 ,8	8 9 )
5 7 9 , 18 2	54 8 ,2 77
( 9 7 , 12 3 )	(4 8 7,6	9 9 )
	2 4	6 6 ,3 56
	-	76 7
1, 5 3 0	(3 ,4	6 0 )
	( 13 5 )		-
( 14 5 , 5 7 9 )	(4 0 0 ,9 8 6 )
3 3 7 ,	8 9 9	(2 76 ,74 5)

Performed by the Independent Auditor of the Entity". A review of interim condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Profit before income tax	559,133	549,709
Income tax expense	(5,465)	(4,449)
Net profit for the period	553,668	545,260
Attributable to:
Equity holders of the Parent	552,930	536,872
Non-controlling interests	738	8,388
	553,668	545,260
Basic and diluted earnings per share
Attributable to equity holders of the Parent (expressed in QR per share)	0.142	0.138
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX
MONTHS ENDED 30 JUNE 2023

P aym ent o f em plo yees ' end o f s ervice benefits		( 14	, 0 2 6 )		(8 ,56 1)
Inco m e tax pa id		( 9	, 9 6 2 )		(9 ,6 0 1)
N ET C A S H F LOWS F R OM / (US ED IN )	OP ER A TIN G	3 13 , 9 11	(2 9 4 ,9 0 7)
A C TIVITIES
IN VE S TIN G A C TIVITIES
Finance inco m e received		18 , 5 6 1		9	,9	9 2
Divide nds received fro m as s o ciates			-		4	,0	0 0
P aym ents fo r additio n to inves tm ent pro perties		( 9	, 2 3 3 )	(73	3	,2	8 2 )
P aym ent fo r no n-current as s ets held fo r s ale			-			(8	4 6 )
P ro ceeds fro m s ale o f no n-current as s ets held fo r s ale	4 2 , 10 0	3	75,16 5
Advances paid fo r pro je cts and inves tm ents			-	(72	2	,2	3 8 )
P aym ents fo r purchas e o f pro perty, plant and equipm ent	( 6 , 2 2 7 )	(8 ,2 53 )

Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.

Ziad Nader

of Ernst & Young

Auditor's Registration No. 258

Date: 26 July 2023

Doha

Net profit for the period Other comprehensive income Other comprehensive income that will be reclassified to profit or loss in subsequent periods: Exchange differences on translation of foreign operations

Other comprehensive income that will not be reclassified to profit or loss in subsequent periods: Net change in the fair value of financial assets at fair value through other comprehensive loss Other reserves Other comprehensive income/(loss) for the period

30 June 2023	30 June
2022
(Reviewed)	(Reviewed)
QR'000	QR'000
553,668	545,260
8,383	(6,374)
6,731	(3,461)

851561

15,965 (9,274)

P ro ceeds fro m s ale o f pro perty, plant and equipm ent

Dividend inco m e received P ro ceeds fro m dis po s al o f financial as s ets at fair value thro ugh pro fit o r lo s s P aym ents fo r purchas e o f financial as s ets at fair value thro ugh pro fit o r lo s s Net m o vem ent in s ho rt term depo s its m aturing after three m o nths N ET C A S H F LOWS F R OM / (US ED IN ) IN VES TIN G A C TIVITIES F IN A N C IN G A C TIVITIES Finance co s t paid P ro ceeds fro m o bligatio ns under Is lam ic finance co ntracts P aym ents fo r o bligatio ns under Is lam ic finance co ntracts Dividend paid to no n-co ntro lling inte res t Dividends paid P aym ent o f leas e liabilities Change in res tricted bank balances

	-	2 2
7 , 4 5 1	2 ,4 8 7
15	, 6 7 8	3 1,9 17
( 16 , 111)	(2 6 ,0 3 4 )
2 3	, 12 2	6 8 8 ,4 2 1
7 5 , 3 4 1	(3 78 ,6 4 9 )
( 5 7 2	, 8 7 6 )	(2 8 1,0 3 1)
1, 5 4 3	, 2 7 5	2 ,8 0 5,776
( 1, 2 5 1, 5 4 5 )	(712 ,3 12 )
( 7	, 5 0 0 )	(7,50 0 )
( 3 7 2	, 7 3 6 )	(6 72 ,3 4 2 )
( 9 3 3 )	(12 ,0 8 8 )
	( 7 0 6 )	(59 9 )

Total comprehensive income for the period	569,633	535,986	N ET C A S H (US ED IN )/ F R OM F IN A N C IN G A C TIVITIES	( 6 6 3	, 0 2 1)	1,119 ,9 0 4
Attributable to:			N ET (D EC R EA S E) / IN C R EA S E IN C A S H A N D C A S H
		EQUIVA LEN TS
Equity holders of the Parent	568,959	527,576	( 2 7 3	, 7 6 9 )	4 4 6 ,3 4 8
Net fo reign exchange difference	2 , 0 3 2	6 ,6 14
Non-controlling interests	674	8,410
C a s h a nd c a s h e quiv a le nts a t 1 J a nua ry	7 14 , 4 9 9	53 4 ,8 73
	569,633	535,986
	C A S H A N D C A S H EQUIVA LEN TS A T 3 0 J UN E	4 4 2 , 7 6 2	9 8 7,8 3 5

INTERIM CONSOLIDATED STATEMENT OF			INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2023
FINANCIAL POSITION AS AT 30 JUNE 2023
		30 June 2023 31 December 2022
		(Reviewed)	(Audited)						Equity attributable to owners of the Parent
		QR'000	QR'000
				Share			Legal			General				Retained				Non-controlling		Total
ASSETS
							Capital			reserve			reserve		Other reserves		earnings	Total			interest		Equity
Cash and bank balances	604,633			898,682
Financial assets at fair value through profit	144,896			32,375			QR'000			QR'000			QR'000		QR'000		QR'000	QR'000			QR'000		QR'000
or loss
Receivables and prepayments	1,581,961			1,567,487
Trading properties	614,900			617,369		Balance at 1 January 2023 (Audited)	3,891,246	2,034,094	4,639,231	(376,850)	11,099,057		21,286,778	176,375	21,463,153
Due from related parties	81,837			227,048
Non-current assets held for sale	-			21,968		Net profit for the period	-	-	-	-	552,930		552,930	738	553,668
Financial assets at fair value through other
						Other comprehensive income / (loss) for the period	-		-		-		16,029		-		16,029		(64)		15,965
comprehensive income	116,262			128,365
Advances for projects and investments	262,558			209,123		Total comprehensive income for the period	-	-	-	16,029	552,930		568,959	674	569,633
Investment properties	36,008,137			35,520,905		Shareholders' contribution:
Property, plant and equipment	502,657			528,595
Right-of-use assets	9,819			11,857		Dividends for 2022	-	-	-	-	(680,968)		(680,968)	-	(680,968)
Investments in associates	23,740			85,829
Goodwill	132,411			132,411		Disposal of Financial asset at fair value through other
Deferred tax assets		4,000			4,436		-	-	-	10,869	(10,869)		-	-	-
TOTAL ASSETS	40,087,811			39,986,450		comprehensive income
LIABILITIES AND EQUITY							Disposal of investment in associate	-	-	-	3,366	-		3,366	-	3,366
LIABILITIES
Payables and other liabilities	1,267,463			1,392,638		Dividend paid to non-controlling interest	-		-		-		-		-		-		(7,500)		(7,500)
Provisions	25,797			25,932		Balance at 30 June 2023 (Reviewed)	3,891,246	2,034,094	4,639,231	(346,586)	10,960,150		21,178,135	169,549	21,347,684
End of service benefits	130,643			133,035
Due to related parties	287,690			178,279
Lease liabilities	290,000			302,158						Equity attributable to owners of the Parent
Obligations under Islamic finance contracts	16,725,751			16,479,664
Deferred tax liabilities		12,783			11,591			Share			Legal			General				Retained				Non-controlling
TOTAL LIABILITIES	18,740,127			18,523,297			Capital			reserve			reserve		Other reserves		earnings	Total			interest		Total Equity
EQUITY								QR'000			QR'000			QR'000		QR'000		QR'000	QR'000			QR'000		QR'000
Share capital	3,891,246			3,891,246
Legal reserve	2,034,094			2,034,094
General reserve	4,639,231			4,639,231		Balance at 1 January 2022 (Audited)	3,891,246	2,033,140	4,639,231	(401,074)	10,708,713		20,871,256	171,852	21,043,108
Other reserves	(346,586)			(376,850)		Net profit for the period
Retained earnings		10,960,150			11,099,057		-	-	-	-	536,872		536,872	8,388	545,260
Total equity attributable to equity holders of	21,178,135			21,286,778		Other comprehensive (loss) / income for the period	-	-	-	(9,296)	-		(9,296)	22	(9,274)
the Parent
						Total comprehensive (loss) / income for the period
Non-controlling interests		169,549			176,375		-	-	-	(9,296)	536,872		527,576	8,410	535,986
TOTAL EQUITY		21,347,684			21,463,153		Shareholders' contribution:
TOTAL LIABILITIES AND EQUITY	40,087,811			39,986,450
			Dividends for 2021	-	-	-	-	(680,968)		(680,968)	-	(680,968)
These interim condensed consolidated financial statements were authorised for issuance by		Relating to disposal of investment in an associate	-	-	-	42,770	(42,770)		-	-	-
the Board of Directors on 26 July 2023 and signed on their behalf by:		Dividend paid to non-controlling interest	-		-		-		-		-		-		(7,500)		(7,500)
Nasser Bin Sultan Al-Hemaidi	Abdulla Bin Jobara Al Romaihi		Balance at 30 June 2022 (Reviewed)	3,891,246	2,033,140	4,639,231	(367,600)	10,521,847		20,717,864	172,762	20,890,626
Board Member	Group Chief Executive Officer