Al-Akaria Reports SAR 579M Net Profit in the Six Months 2026
ALAKARIA 4020.SA | 0.00 |
On 2026-08-10 15:53:24 (Saudi Time), Saudi Real Estate Co.(4020.SA) announced its Interim financial results for the six months ended on June 30, 2026.
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 423 | 489 | -13.496 | 319.8 | 32.27 |
| Gross Profit (Loss) | 203.9 | 238 | -14.327 | 159.3 | 27.997 |
| Operational Profit (Loss) | 165.6 | 173.4 | -4.498 | -46.2 | - |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 103.3 | 94.4 | 9.427 | 475.7 | -78.284 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 113.6 | 97.7 | 16.274 | 478.6 | -76.264 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 742.8 | 1,117.1 | -33.506 |
| Gross Profit (Loss) | 363.3 | 547.7 | -33.668 |
| Operational Profit (Loss) | 119.4 | 416.7 | -71.346 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 579 | 229.6 | 152.177 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 592.3 | 296.3 | 99.898 |
| Total Shareholders Equity (after Deducting Minority Equity) | 5,890.5 | 5,275.3 | 11.661 |
| Profit (Loss) per Share | 1.54 | 0.61 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
Year-on-Year Performance Drivers
For the six-month period ending 30 June 2026, Sales/Revenue declined 33.506% YoY to SAR 742.8 million (from SAR 1,117.1 million), primarily driven by a 78% decrease (SAR 383 million) in property sales revenue due to the divestment of non-core lands in the prior year period, partially offset by a 19% increase (SAR 40 million) in rental, construction, and facilities management segments. Despite the SAR 374 million revenue decline, Net Profit attributable to shareholders surged 152.177% YoY to SAR 579 million (from SAR 229.6 million), mainly due to the recognition of a SAR 640 million remeasurement gain on the investment in Riyadh Holding Company following the loss of significant influence, which resulted from Riyadh Holding Company's capital increase and the entry of a new shareholder wholly owned by the principal shareholder, leading to a reduction in Al-Akaria's ownership interest and reclassification of the remaining investment as an equity investment at fair value through other comprehensive income (FVOCI).
Quarter-on-Quarter Performance Drivers
QoQ revenue rose 32.3% (+SAR 103 million), driven by a 48% increase (+SAR 38 million) in rental revenue, an 18% rise (+SAR 32 million) in infrastructure project revenue, and a 53% gain (+SAR 23 million) in property sales revenue. Despite this revenue improvement, net profit fell 78.284% (-SAR 372 million) QoQ, as the prior quarter included a one-off remeasurement gain of SAR 640 million on the investment in "Riyadh Holding Company" following the loss of significant influence — triggered by a capital increase and entry of a new partner, which reduced Al-Akaria's ownership interest and led to reclassification of the remaining stake as an FVOCI equity investment.
Other Items
The external auditor issued an unmodified conclusion on the interim condensed consolidated financial statements for the six months ended 30 June 2026. However, the auditor drew attention to two matters without modifying their conclusion. First, as noted in note (5-a), certain land parcels owned by the Company are currently not available for use or development due to various reasons related to the areas where these lands are located and ongoing studies by specialised committees; management is communicating with relevant government agencies to address these issues, and the impact on the net realisable value of these lands remains uncertain, with a carrying value of SAR 339 million as at 30 June 2026 (31 December 2025: SAR 438 million). Second, as noted in note (5-b), the land designated for the Al Widyan project is located within an area currently under study by relevant government agencies with the aim of developing it, which may result in a fundamental change to the original project plan and may impact the land's realisable value; the effect remains uncertain and is dependent on future government agency plans, with the carrying value of the land and capital work-in-progress amounting to SAR 2.9 billion as at 30 June 2026 (31 December 2025: SAR 2.9 billion). Total shareholders' equity (after deducting minority equity) stood at SAR 5,890.5 million for the current period, compared to SAR 5,275.3 million in the same period of the prior year, representing an increase of 11.661%. Earnings per share for the current period were SAR 1.54, compared to SAR 0.61 in the same period of the prior year. Certain prior period amounts have been reclassified to conform to the current period presentation.
Original announcement:
Attached PDF document link:
https://www.saudiexchange.sa/Resources/fsPdf/22612_438_2026-08-10_15-22-01_en.pdf
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