AlAhli REIT 1 logs SAR 52.7M FFO, SAR 26.7M net profit in 2024

AlAhli REIT Fund 1’s funds from operations (FFO) slumped 18% year-on-year (YoY) to about SAR 52.7 million (SAR 0.38 per unit) in 2024, down from SAR 64.1 million (SAR 0.47 per unit) in 2023.

Net profit dropped 34% to SAR 26.7 million (SAR 0.19 per unit) from SAR 40.6 million (SAR 0.29 per unit) in 2023.

The annual profit drop was attributed to an increase in operating expenses to SAR 56.1 million, compared to SAR 48.6 million a year earlier.

The fund also reported higher financing costs and booked an SAR 8 million provision for impairment losses on property, plant, and equipment (PP&E) for the period.

Meanwhile, rental revenue from investment properties edged up to SAR 168.5 million in 2024 from SAR 167.3 million in 2023. The slight increase was driven by a 10% rise in occupancy rates at Al Andalus Mall Hotel to 70%, while Qbic Plaza maintained full occupancy at 100% during the period.

In contrast, occupancy rates at Salama Tower and Al Andalus Mall declined in 2024. Salama Tower saw its first drop since reaching full occupancy years ago, falling 12% to 88%. Al Andalus Mall’s occupancy also slipped 6% to 88%.

AlAhli REIT Fund 1 also reported a sharp drop in impairment losses on operating lease receivables, which fell to SAR 1.3 million in 2024 from SAR 8.5 million a year earlier. Other expenses also declined during the period.

The net book value per unit reached SAR 8.70, while the net market value per unit stood at SAR 10.05.

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