Profits of the listed property development firms fell by 32.4 percent to reach SR1.23 billion in the first nine months of 2013 compared to SR1.82 billion in the comparable period last year, according to a financial report.
The real estate development sector is composed of eight firms whose market capitalization stands at SR80.4 billion, or 5 percent of the Saudi capital market. Their capitals stand at SR37.3 billion, the report, filed by Al-Hayat daily, said.
Dar Al-Arkan Real Estate Development Co. posted the biggest profits among the property firms sector at SR183.3 million in Q3 compared to SR103.7 million in the previous quarter (Q2, 2013), or an increase of 77 percent, the report said. However, its profits in the last nine months dropped by 37.88 percent to SR524.6 million compared to SR844.5 million in the same period last year, the report said.
On the other hand, profits of Makkah Construction and Development Co. (MCDCO) fell by 12.6 percent to SR111 million in Q3, 2013 compared to SR127 million in the equivalent period last year. However, MCDCO’s profits soared by 73.44 percent in Q3, 2013 compared to Q2, 2013, which stood at SR64 million.
The company attributed decline of profits in Q3, 2013 against those in Q3, 2012 to the fall of revenues and low occupancy rates of rooms at Makkah Hilton Tower and Hotel due to the decrease of the number of visitors and Umrah performers, the report said.
Meanwhile, net profits of the Saudi Real Estate Co. (SRECO) contracted by 23.3 percent to SR36.2 million in Q3, 2013 compared to SR47.2 million in Q3, 2012 but, however, increased by 88.54 percent compared to the profits of Q2, 2013, which stood at SR19.2 million.
SRECO’s profits during the last nine months of the current year dropped by 20.46 percent to SR97.6 million against SR122.7 million in the same period last year, according to the report.
Taiba Holding has its profits increased by 20.73 percent in the third quarter to SR62.9 million compared to SR52.1 million in the similar period last year. Net profits in the nine months fell by 45.63 percent to SR199.5 million compared to SR366.9 million of the equivalent period last year, the report said.
Similarly, profits of Al-Riyadh Development Company (ARDCO) increased by 41.81 percent to reach SR40.7 million in Q3 2013 compared to SR28.7 million in the same period last year but, however, dropped by 16.43 percent against profits of the previous quarter (SR48.7 million).
Profits of ARDCO kept upward trend in the last nine months to reach SR204.4 million or an increase of 29.61 percent over profits of the same period last year, which registered SR157.7 million, the report said.
Profits of Emaar Economic City (EEC) dropped by 58.61 percent in Q3, 2013 to SR18.43 million compared to SR44.53 million in the same period last year. Similarly, profits of the last nine months of 2013 contracted by 70.85 percent to SR53.18 million compared to SR182.43 million in the equivalent period last year, it said.
The company attributed the profits fall to the limited products offered by the company as it has currently embarked on the development of a group of new land plans and projects, it said.
On the other hand, losses of Jebel Omar Co. narrowed to SR3.4 million in Q3, 2013 against losses of SR11.8 million in Q3, 2012, or an increase of 71.2 percent. Overall, losses of the nine months dropped to SR14.7 million compared to SR41.8 million in the same period last year, the report said.
In the meantime, net profits of Knowledge Economic City (KEC) dropped by 82.26 percent to SR1.79 million in Q3, 2013 compared to SR9.68 million in Q3, 2012. The company sustained losses of SR9.43 million during the nine months of 2013 compared to SR581,000 in the comparable period last year, the report said.