Al Akaria expects robust operations on higher rental income

Commenting on the company’s results for Q4 2025—which saw a 52.5% decline year-on-year in revenues and an 85.4% drop in net profit — Alsehaibny explained that Q4 2024 included one-off items. These included the launch of sales for Phase 3 of the “Al-Akaria Park” project, as well as the start of executing a plan to divest non-core assets, as part of the company’s 2023 strategy aimed at maximizing shareholder returns, diversifying income sources, and achieving a balanced capital structure. These items had exceptional effects on revenues and profits in the fourth quarter of 2025.

According to the top executive, the total land area subject to the “white land” fees in Riyadh is about 488,000 square meters, while the total value of issued invoices reached about SAR 61 million, of which SAR 33 million is related to land tied to projects under development or in advanced stages of contractor appointment, in addition to land allocated for divestment under the “Al-Akaria Park” project.

He noted that the company deals with land fees within clear development and divestment plans, which helps improve land portfolio efficiency and maximize asset utilization.

Moreover, the Acting CEO highlighted that the 20-year lease contract for the “Al-Reef Residential Complex,” valued at SAR 1.2 billion, is one of the largest long-term lease contracts in the company’s portfolio. He expects its financial impact to begin in Q4 2026, supporting its rental income growth.

He added that the contract is structured as a Triple Net (NNN) lease, enhancing the stability and quality of rental cash flows, as the tenant bears major operating expenses, thus reducing unexpected costs.

Regarding development projects, Alsehaibny said that the company’s projects are progressing according to approved timelines. “In 2025, restoration work was completed on Gate 6 of the Olaya Oasis complex, along with a number of residential units in the Diplomatic Quarter, with leasing activities starting in 2026. This is expected to positively impact revenues,” he continued.

Additionally, the completion of the “Sedra-1” project reached about 97% by the end of 2025, with unit deliveries expected to begin in the first half of 2026. Meanwhile, a contractor has been appointed for the “Sedra-2” project, which includes 310 villas, with construction starting in December 2025.

The top executive added that Al Akaria expects to complete Tilal Commercial Center and Al-Reef complex in the Diplomatic Quarter during the first half of 2026, and finish restoration works for Akaria Centers 2 and 3 by 2027, in addition to the “Narjis Business Park” project expected to be completed by the end of 2027.

He also mentioned the establishment of “Maqarr Al-Ibda” in 2025 to provide co-working spaces, with operations expected to begin in 2026, as part of the company’s strategy to diversify income sources.