Barwa Real Estate Co. fell the most in three months after Qatar’s biggest publicly traded developer by assets reported a 87 percent slump in quarterly profit.
The shares decreased 2.9 percent, the most since April 30, to 25.5 riyals at the close in Doha, bringing the drop this year to 7.1 percent. Some 2 million shares were traded, 2.4 times the three-month daily average. The stock was the biggest decliner in percentage terms on the benchmark QE Index, which increased less than 0.1 percent, taking this year’s gain to 16 percent.
Barwa said second-quarter profit fell to 40.6 million riyals ($11 million), according to a company statement today. First-half profit slumped 66 percent on delays in “sealing certain deals,” the company said without being more specific. The developer, which suffered from sluggish demand for properties since the 2008 financial crisis, said June 6 it plans to sell 26 billion riyals of assets to government owned Qatari Diar Real Estate Investment Co. to reduce debt.
“While Barwa has completed some projects, the bulk of their developments hasn’t been finished because they faced liquidity problems” before June announcement, said Taher Safieddine, an analyst at Shuaa Capital PSC. The developer will assess remaining projects to see which ones should be completed amid its restructuring, he said.