Riyadh Development’s 9M 2023 profit falls 53% to SAR 122.1 mln; Q3 at SAR 46.4 mln

Riyadh Development Co. posted a SAR 122.1 million net profit for the first nine months of 2023, down 53% from SAR 261.7 million.

The nine-month profit decline was attributed to an 81% year-on-year (YoY) drop in income from Tanal for Real Estate Investment and Development Co., an associate. Paired with increased Zakat provision, general and administrative expenses also soared on the allowance for bad debts and consulting expenses for institutional development work.

This is besides the rise in cost of revenue due to the entry of new office tower costs, attracting competencies in the operational sectors under the board’s approved plan, and high cleaning and maintenance costs.

This came despite the 15% YoY increase in operating income as a result of higher occupancy rates of the company's malls and the repricing of some services. Further, income from Islamic Murabaha deposits added 69% YoY, given the uptick in the volume of deposits and the interest rate hikes.

The Q3 2023 profit fell 29% to SAR 46.4 million, compared to SAR 65.4 million in the year-ago period.

Sequentially, the company’s third-quarter earnings advanced 7.2% from SAR 43.2 million.

Total shareholders’ equity (no minority interest) amounted to SAR 2.23 billion in the first nine months of 2023, compared to SAR 2.15 billion in the prior-year period. 

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