Dar Al-Arkan Real Estate Development Co. Chairman, Yousuf Al Shelash, expects better results in Q3 2019.
He told CNBC Arabia that the results of Q2 2019 were impacted by lower real estate sales during Ramadan and summer season.
Lower sales hit all areas under coverage, including Riyadh, the Western region and Madinah.
Operating expenses decreased in Q2, as the firm was keen to cut expenses in the past two years. The reduction, however, did not cover the drop in sales.
Dar Al-Arkan leasing portfolio improved in Q2, compared to previous quarters, mainly on higher rentals at Al Qasr Mall, which saw new activities, Al Shelash said.
Finance charges have been decreasing in the past five years, as the sukuk issuance has significantly reduced loans, he noted, adding that the firm’s financing to asset size is ‘very reasonable’.
Dar Al-Arkan reported a net profit of SAR 100.5 million in H1 2019, compared to SAR 439.7 million a year earlier. Net profit in the second quarter fell by 31 percent YoY to SAR 74.96 million.
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