Riyadh – Saudi Arabia – Al Akaria Saudi Real Estate Company (SRECO), one of the largest publicly listed real estate developers on the Saudi stock exchange (Tadawul), reported its financial results for the second quarter of 2018. SRECO posted a net profit of SAR 30.27 million in Q2 2018, representing an increase of 46.16% compared to the same period last year. The Company improved its gross margins during the quarter to 70.4% (2017: 67.5%) driven by the increase in revenues to 83.1 million, up 5.7% compared with the same period last year. Net profits were also boosted by gains from revaluation of derivative financial instruments amounting to SAR 5.4 million compared to losses of SAR 6.3 million in Q2 2017.

In line with the company’s strategy to become a developer of large-scale integrated communities, SRECO announced plans for Al Widyan, a 7 million square meter mixed-use development in a strategic location of Riyadh. SRECO announced in May a recommendation to double its share capital by issuing one bonus share for every share. This means that the number of outstanding shares rose from 120 million to 240 million.

Mamdouh Al Sharhan, CEO of Saudi Real Estate Co said: “We are glad to report a net profit of SAR 74.9 million in H1 2018, representing an uplift of 5.17% compared to the same period last year. Our strong financial performance for the second quarter of 2018 reflects the successful execution of our strategy, strong leadership, clear vision and, importantly, robust financial stability, which provide necessary foundations from which to build a new era of integrated lifestyle communities.”

He added: “We are excited to be part of Vision 2030 with our latest project announcement, Al Widyan, which will provide a good quality of life, a healthy lifestyle and an attractive living environment for all its residents, offering a new paradigm for community living in the Kingdom of Saudi Arabia”.

SRECO is reforming as a progressive, visionary company at the forefront of the nation’s intent to undertake a historic transformation. With aspirations to become a global real-estate developer and a major contributor to the urban development of Saudi Arabia, SRECO offers an integrated, full service approach to real estate development. The company’s portfolio includes a number of residential, commercial and innovative office buildings that enrich the real estate landscape in Saudi Arabia.

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About Al Akaria Saudi Real Estate Co. (SRECO)

Al Akaria Saudi Real Estate Company is a leading real estate developer in Saudi Arabia and one of the largest publicly listed developers in the Kingdom, trading on the Saudi stock exchange as the Saudi Real Estate Co.

Founded in 1976 by a Royal Decree, the Saudi Real Estate Co. is partially owned by the government of Saudi Arabia through the Public Investment Fund (PIF) with 65% and the Public Pension Agency (PPA) with 5%. From its headquarters in the capital city of Riyadh, the company offers an integrated, full service approach to real estate development, encompassing finance, design, construction, facility and property management.

The company has worked on more than 32 residential, retail and commercial projects. These include many ground-breaking real estate projects in Saudi Arabia, such as Akaria 1, the first commercial centre in the Middle East, the Olaya Akaria Residential Complex, the first closed residential complex in Saudi Arabia and The Plaza, the first smart building in Saudi Arabia. Al Akaria Saudi Real Estate Co. aims to become a flag bearer for the Kingdom’s Vision 2030 by developing new and innovative model communities within the Kingdom and abroad.

For more information, please visit: http://www.al-akaria.com/en/

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© Press Release 2018

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