Alandalus Property eyes portfolio growth across 3 sectors; projects on track: CEO

Occupancy in the offices segment reached 100%, while the hospitality segment's occupancy rate increased by 8% compared to 2022.

In retail, the company maintained an average occupancy rate of around 94% across its shopping centers.

The company continues to explore diverse investment opportunities with distinctive value propositions to maximize value for the company and its shareholders and strengthen its leading role as a real estate investor, developer, and operator, he said.

He also noted that the company has no plans to exit its existing projects at present.

Asked about The Village Project's contribution to Alandalus Property's 2023 results, Al-Nasser said the project, in which Alandalus Property holds a 25% stake through Al Jawhara Al Kubra Co., commenced operations at the end of H1 2023, with occupancy reaching approximately 70% by year-end.

He explained that the project's positive contribution to the company's results is generally reflected in the period following its opening. Accordingly, The Village was expected to contribute positively to Alandalus Property's results in 2024.

Regarding the financial impact of the commencement of operations at West Jeddah Hospital, Alnasser said Alandalus Property and its development partner, Dr. Sulaiman Al Habib Medical Services Group, previously announced that the hospital was scheduled to commence operations by the end of Q1 2024.

Any further developments will be announced in due course.

As for the hospital's financial impact, he expected it to contribute to Alandalus Property's results during 2024, given that the hospital would still be in its early operating phase.

However, the company anticipates a positive contribution based on the hospital's performance. Commenting on the company's financial results, Alnasser attributed the decline in profit year on year primarily to a nearly 60% increase in financing costs (FCs), driven by higher SAIBOR rates.

He added that the company obtained additional bank financing facilities in the form of Islamic financing during 2023 to fund the expansion project at Alandalus Mall and the acquisition of an office tower in Riyadh during Q4.

Higher operating expenses (OpEx), particularly in the retail and hospitality segments, also contributed to the decline in annual profit.

Despite these factors, the company maintained occupancy levels across its various segments, keeping revenue broadly stable during 2023 compared to the previous year, he concluded.