Riyadh Development expects profit growth by year-end

Mohammed Alkulaib, Riyadh Development Co.’s CFO

Riyadh Development Co.’s CFO, Mohammed Alkulaib, expects profit growth by year-end, driven by a SAR 21 million increase in operating revenue over the first nine months.

Alkulaib attributed the revenue growth to occupancy rates in company centers and markets surpassing 95%, he told Al Arabiya TV.

While Q3 operating revenues rose year-on-year (YoY), profits were impacted by higher provisions, primarily from quarterly assessments of debts and customer collections.

The company’s higher profits led to an increased zakat provision, which weighed on Q3 results. Affiliate Tenal saw a SAR 44 million profit boost, with 96% of planned lots sold.

Revamping infrastructure in markets has drawn more visitors, boosting real estate unit prices. Efforts also allowed reversal of a SAR 28 million potential liability provision.

Alkulaib noted Riyadh Development’s 20% stake in a SAR 2.2 billion Arab Bank Fund project, with a significant impact expected on future profits.

Riyadh Development’s profit rose 69% to SAR 206.6 million over nine months. Q3 profits dipped 5% to SAR 44.2 million.