Banan’s H1 2025 profit falls 9% to SAR 18.2M; Q2 at SAR 8.2M

Banan Real Estate Co. reported a net profit of SAR 18.2 million for the first six months of 2025, a decline of 9% from SAR 20.1 million in the year-earlier period.

The profit decline was attributed to lower revenue, despite an 8% year-on-year (YoY) rise in rental income. This was driven by the absence of land sales in the current period, versus SAR 26.3 million of land sales recorded a year earlier.

Financing costs (FCs) rose SAR 2.65 million YoY, largely due to higher funding expenses at the subsidiary, Qimam Noshoz Real Estate Development Co.

Q2 2025 profit rose YoY as the cost of revenue had fallen by SAR 1.8 million, or 37%, due to the absence of land sale costs. This is in addition to a SAR 2.1 million impairment reversal on investment properties, which supported the results of the three-month period.

However, revenue declined YoY, as no land sales occurred in Q1 2025 versus SAR 3.62 million of sales in the Qadisiyah area last year, while rental income rose 7% YoY.

FCs grew by SAR 2.3 million YoY; the majority of the increase came from the subsidiary, Qimam Noshoz.

On a sequential basis, profit slightly fell due to a SAR 324,000 (1.8%) drop in revenue caused by tenant turnover and temporary vacancies in some properties.

Meanwhile, FCs rose by SAR 1.85 million from Qimam Noshoz after a land purchase in the Rahmaniyah district.

Total shareholders’ equity, after minority interest, reached SAR 414.21 million by June 30, 2025, compared to SAR 393.50 million in the prior-year period.

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