Alandalus committed to investor obligations on sustainable growth, dividends: CEO

Hathal Alutaibi, CEO of Alandalus Property

Alandalus Property Co.’s board of directors recommended paying cash dividend at 60% for three years as of 2021, Chief Executive Officer (CEO) Hathal Alutaibi told Argaam.

The company’s dividend distribution policy reflects its commitment towards investors, thanks to the sustainable growth and constant dividend payment. However, the new policy is subject to any material change in the company’s strategy and business, cash flows, new capital investments, and future outlook, Alutaibi said.

“Cash dividend depends on the company’s profitability and not liquidity. Alandalus’ cash balance stood at SAR 230 million as of March 2021,” he confirmed.

Alandalus has no financial liabilities, Alutaibi said, adding that every project is undertaken by the company, which in turn, secures the required credit facilities.

Alandalus can obtain loan facilities at preferential terms to finance any potential project, thanks to its strong financial position, he noted.

Talking about the recent capital hike, Alutaibi said as the company continues with ongoing projects, the move will help bolster Alandalus’ capital base and fund future business activities.

The company’s business portfolio focuses on yield-generating properties, especially commercial and multi-purpose developments, the CEO said. This allows Alandalus the chance to set up entertainment and retail segments within the residential projects being developed by other real estate companies.

According to data available with Argaam, the company announced in May that the board of directors approved the dividend policy for 2021, 2022 and 2023, which will be presented for approval during the upcoming extraordinary general assembly meeting (EGM), the date of which will be announced later.

Alandalus intends to distribute 60% of its yearly net profits for 2021, 2022 and 2023, on a semi-annual basis.

In June, the Capital Market Authority (CMA) approved the company’s request to increase its capital to SAR 933.33 million from SAR 700 million.