Asas Makeen profit down to SAR 18.3M in H1 2025

Asas Makeen Real Estate Development and Investment Co. reported a net profit of SAR 18.3 million in H1 2025, down 27.6% from SAR 25.3 million in the year-earlier period.

The company attributed the profit decline to higher cost of revenue, which pressured gross margins despite overall sales growth.

It also cited a sharp drop in third-party development revenue to SAR 1.3 million from SAR 20.4 million a year earlier, alongside increased general and administrative expenses from business expansion, including higher payroll costs to attract new talent.

In addition, finance costs of SAR 2.4 million were recognized from the accounting treatment of an interest-free loan provided by a founding shareholder, while last year’s comparable period included non-recurring unrealized gains from revaluation of financial investments.

However, revenues rose by 102% year-on-year (YoY) to SAR 93.8 million in property sales, compared with SAR 46.4 million a year earlier, as several projects were completed and sold. Contracting revenue also increased by 67% YoY to SAR 36.9 million from SAR 22.1 million, driven by progress on ongoing projects.

Meanwhile, administrative and rental services revenue surged 1216% YoY to SAR 1.5 million from SAR 114,000, reflecting the start of leasing operations at an investment property.

Compared to H2 2024, Asas Makeen’s profits fell by 77.9% from SAR 82.7 million.

Total shareholders’ equity, no minority interest, stood at SAR 353.52 million by the end of H1 2025, compared to SAR 233.7 million in the year-earlier period.

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