On 2026-08-02 08:11:49 (Saudi Time), Riyadh Development Company announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue increased 24.819% YoY to SAR 177.78 million (from SAR 142.43 million), driven primarily by gains from partial sales of the company's non-strategic lands and a SAR 2 million increase in operating revenue. Net profit attributable to shareholders rose marginally by 1.077% YoY to SAR 108.86 million (from SAR 107.7 million), supported by the land sale gains, higher operating revenue, and the recognition of a building that reverted to the company's ownership upon expiry of a Build-Operate-Transfer (BOT) arrangement. These positive drivers were largely offset by the recognition of a SAR 19 million provision for White Land Tax and a SAR 20 million provision for legal claims during the period.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 28.886% to SAR 73.88 million, primarily due to the absence of partial land sales from non-strategic assets that boosted the previous quarter's revenue by SAR 30 million. Despite the revenue drop, net profit attributable to shareholders rose 15.649% QoQ to SAR 58.38 million, driven by a SAR 3 million increase in operating revenue, a SAR 1 million reduction in operating costs, and the recognition of a building that reverted to the company's ownership upon expiry of a Build-Operate-Transfer (BOT) land investment agreement. These gains were partially offset by the recognition of a SAR 20 million litigation provision related to a lease agreement lawsuit dating back to 2004.

Other Items

The external auditor issued an unmodified conclusion with no additional comments, reservations, or other matters noted. Comparative figures have been reclassified to align with the current period's presentation format. Total shareholders' equity (after deducting minority equity) stood at SAR 4,177 million as of the current period, compared to SAR 3,997 million in the same period of the prior year, representing an increase of 4.503%. Earnings per share for the current period were SAR 0.47, compared to SAR 0.49 in the same period of the prior year. No profits or losses resulting from changes in investment property fair value were reported. The weighted average number of ordinary shares outstanding during the period was calculated in accordance with IAS 33, adjusted for shares issued during the period using a time-weighting factor based on the proportion of days outstanding.

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