Banan profit grows 17% to SAR 21.2M in H1 2026; Q2 at SAR 8.8M

Banan Real Estate Co. reported a net profit of SAR 21.2 million for the first half of 2026, up 17% from SAR 18.2 million in the same period last year.

This came amid higher revenue for H1 2026, driven by increased rental income at both Banan and its subsidiary, Al-Aziza Investment and Real Estate Development Co., supported by higher occupancy rates and improved asset performance.

Rental revenue rose 3.8% during the same period, while financing costs declined by SAR 2.43 million. Gains from property disposals also increased by SAR 372,000.

In Q2 2026, net earnings amounted to SAR 8.8 million, rising 8% from SAR 8.2 million in the year before. This was due to higher revenue and occupancy rates.

The increase came despite a SAR 446,500 rise in general and administrative expenses and a lower reversal of impairment losses on investment properties, which totaled SAR 225,800, compared with SAR 2.18 million a year earlier, reducing the positive contribution of this item to net profit.

Compared with the previous quarter, however, the three-month profit declined 28.8% from SAR 12.41 million. This followed a 1% QoQ decrease in revenue following the sale of a property in Al Wadi District.

The quarterly earnings decline also reflected the absence of gains from investment property disposals after the company recorded SAR 1.6 million in such gains during the first quarter of this year. It also recognized a SAR 333,000 drop in rental income following the disposal of one property, and SAR 246,000 in fair value losses on financial instruments through profit or loss, compared with losses of SAR 12,400 in the previous quarter.

Total shareholders’ equity, excluding minority interest, reached SAR 433.50 million by June 30, 2026, compared to SAR 414.21 million in the year-earlier period.

View more financial results