ARDCO’s share of projects hits SAR 3B, to exit 300,000 sqm land plots: CFO

The total value of projects in which Riyadh Development Co. (ARDCO) participates stands at approximately SAR 9 billion, with the company’s share exceeding SAR 3 billion, according to CFO Mohammed Alkulaib.

Alkulaib told Al Arabiya TV that the projects will be financed through several sources, including in-kind land contributions, available cash liquidity and borrowings from financing institutions, noting that the company currently holds cash liquidity of more than SAR 1.08 billion.

Revenue from the company's centers and markets grew by approximately 9%, currently exceeding SAR 280 million on an annual basis, compared with around SAR 200 million in 2021, when occupancy stood at approximately 75%.

Growth in revenue from the centers and markets was supported by higher occupancy rates, infrastructure development, improvements to the experience of customers, tenants and visitors, as well as the restructuring of certain prices, according to Alkulaib.

The increase in profits from the centers and markets amounted to nearly SAR 6 million, excluding the impact of land sales recorded during the corresponding period last year, he added.

As regards the white land fees, Alkulaib said ARDCO had recognized a provision of about SAR 18 million, around 72% of which relates to a plot of land acquired last year as part of a capital increase transaction.

The CFO added that the company had begun developing the land and was seeking additional extensions from the relevant regulatory authorities. He stressed that obtaining such extensions would not result in the provision being reversed at this stage. Instead, it could be reversed upon completion of the project, once the land has been developed in accordance with the approved plan and regulatory requirements.

The company's land portfolio exceeds 1.3 million square meters (sqm), most of which will be developed. However, the company plans to exit non-strategic land plots covering between 200,000 and 300,000 sqm, according to the top official.

Some of these divestments may have a financial impact in Q4 2026, while the remaining transactions could extend into the coming years, he noted.

Regarding the provision of approximately SAR 20 million for legal cases, Alkulaib said the company recognizes provisions for claims and disputes in accordance with accounting standards and reviews them periodically based on developments and updates in the relevant cases.

According to Argaam data, ARDCO's profit fell by 42% to SAR 146.5 million in 9M 2026, compared to SAR 251.5 million in the same period a year ago. Q3 profit declined by 74% YoY to SAR 37.7 million.