Banan Real Estate Reports SAR 34.49M Net Profit in 2025
BANAN 4324.SA | 3.45 | -1.15% |
On 2026-03-10 15:41:34 (Saudi Time), Banan Real Estate Co. announced its Annual financial results for the twelve months ended on December 31, 2025.
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 73,854,896 | 92,945,824 | -20.54 | ||
| Gross Profit (Loss) | 61,019,558 | 64,684,040 | -5.67 | ||
| Operational Profit (Loss) | 50,194,291 | 49,192,027 | 2.04 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 34,490,210 | 35,632,018 | -3.2 | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 34,197,522 | 35,510,930 | -3.7 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 419,224,959 | 395,012,591 | 6.13 | ||
| Profit (Loss) per Share | 0.17 | 0.18 | |||
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | -0 | - | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year |
The decrease in revenue during this year compared to the previous year is mainly attributable to the following:
1- The recognition of non-recurring revenue from the sale of land in Al-Qadisiyah district amounting to SAR 26.3 million during 2024, while no land sales were recorded in 2025.
2- On the other hand, rental revenues at Banan Real Estate Company and its subsidiary Al-Aziza Investment and Real Estate Development increased by SAR 5.6 million during 2025, achieving a growth of 9% compared to 2024. This reflects an improvement in the performance of the leasing sector and greater stability in operating revenues |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is |
The decrease in net profit during this year compared to the previous year is mainly attributable to the following:
1- The recognition of non-recurring revenue from the sale of land in Al-Qadisiyah district amounting to SAR 26.3 million during 2024, while no land sales were recorded in 2025, which impacted the net profit for this year.
2- An increase in finance costs, which reached SAR 9.7 million during 2025 compared to SAR 4.5 million in 2024. This was mainly due to increased financing in the subsidiary Qimam Nashz Company, despite the decrease in finance costs at Banan Real Estate Company, which recorded SAR 1.9 million.
On the other hand, the results reflected some positive indicators, including:
1- An increase in rental revenues at Banan Real Estate Company and its subsidiary Al-Aziza Investment and Real Estate Development by 9%, reaching SAR 73.85 million during 2025.
2- A decrease in the expected credit loss provision to SAR 170 thousand in 2025 compared to SAR 2.1 million in 2024.
3- A decline in the impairment of investment properties to SAR 1.398 million during 2025 compared to SAR 3.51 million in 2024. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | NONE |
| Reclassification of Comparison Items | During the year, the Group reclassified certain comparative figures in the financial statements to align with the presentation of accounts for the current year |
| Additional Information | - |
Year-on-Year Performance Drivers
Sales declined 20.54% YoY to SAR 73.85 million primarily due to the absence of non-recurring land sales that contributed SAR 26.3 million in 2024, partially offset by a 9% increase in rental revenues. Net profit decreased 3.2% YoY to SAR 34.49 million, driven by the loss of non-recurring land sale revenue and increased finance costs rising to SAR 9.7 million from SAR 4.5 million in the previous year. Despite revenue challenges, operational efficiency improved with reduced expected credit losses and lower investment property impairments, while the core rental business showed strong growth momentum.
Other Items
Banan Real Estate Co. received an unmodified audit opinion for the year ended December 31, 2025. No material uncertainties, going concern issues, or significant risks were identified in the auditor's report. The company maintained positive profitability with earnings per share of SAR 0.17 and total shareholders' equity of SAR 419.22 million, representing a 6.13% increase from the previous year. No accumulated losses were reported, indicating the company's financial stability.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=93582&anCat=1&cs=4324&locale=arImportant Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.