Riyadh – Saudi Arabia – The Board of Directors of Al Akaria Saudi Real Estate Company (SRECO), a leading real estate developer in the Kingdom of Saudi Arabia and one of the Kingdom’s largest publicly-listed real estate developers, recommended doubling the Company’s share capital by issuing one bonus share for every share. This will increase the Company’s Share capital from SR1.2 billion to SR2.4 billion. The number of outstanding shares will rise to 240 million from 120 million.

The increased share capital reflects the Company’s desire to match its capital with its current assets, in line with its strategy to become an integrated real estate development company.

SRECO reported a net profit of SAR 44.6 million for Q1 2018, the first-quarter net profit rose by 11.5%, compared with the previous quarter, backed by higher revenue and a relative decrease in operating expenses.

In 2017, SRECO has announced its financial results, delivering SAR 132 million net profit, reflecting an 80% growth on the previous year. The Saudi Joint Stock Company, with Saudi Arabia’s Public Investment Fund (65%) and the Public Pension Agency (5%) as majority shareholders, attributed its 79.78% year over year (YoY) growth in net profits to 80.9% reduction in financing costs, 20.2% increase in profits from its joint-ventures and subsidiaries, 16.7% increase in short-term Murabaha income, and continuing growth in revenue by 2.2% in spite of current market challenges.

The strong set of financial, operating and portfolio performance results are reported as the company prepares to launch ambitious expansion plans to deliver a new genre of large scale, mixed-use developments in Saudi Arabia real estate market.

Abdullah bin Ibrahim Saad Al Ayadhi, CEO of Saudi Real Estate Co said: “We are pleased to have delivered another strong set of results in 2017, with our proactive approach to asset management across the portfolio making a significant contribution to this success.

“Our company is underpinned by a strong leadership, clear vision and, importantly, robust financial stability, which provide necessary foundations from which to build a new era of sustainable urban communities. 

“We are excited to soon be embarking on a new chapter in the company’s history, which aligned to Vision 2030, provides an unprecedented opportunity to elevate our track record of delivering innovative community-centric real estate developments to a new level.”      

SRECO is currently working on a number of strategic real estate projects including Al Dhahia, a semi-gated residential and commercial complex, which brings a new style of integrated living to Riyadh by offering residential units, commercial space as well as retail and leisure amenities integrated into one community, occupying 430,757 m2; Al Narjes Compound, a gated community with 162 furnished residential units; 31 Town Houses and 131 apartments occupying an area of 25,570 m2 in Riyadh; in addition to an extension to the first and second phase of the “Masaken Al Akaria” project in the Diplomatic District of Riyadh which includes 21 three storey residential buildings, occupying a total area of 14,876 m2.

The company has delivered over 32 projects of residential, retail and commercial projects over the last four decades. In 2017, Al Akaria Saudi Real Estate Company (SRECO) implemented a new business framework which governed its financial and administrative processes and embarked upon a digitization program to automate its administrative and financial business processes. These changes will drive operational efficiencies in the years ahead and demonstrate the Company’s commitment to maximizing returns for its shareholders over the longer term.

About Al Akaria Saudi Real Estate Company (SRECO)

Al Akaria Saudi Real Estate Company is a leading real estate developer in the Kingdom of Saudi Arabia and one of the largest publicly listed developer in Saudi Arabia, 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 Sovereign Wealth Fund of Saudi Arabia (PIF) with 65% and the Public Pension Agency (PPA) 5% as majority shareholders. 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 and asset management.

The company has worked on over 32 projects of 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/

© Press Release 2018