Alandalus Property announces its financial results for Q3, 2020
Riyadh, Saudi Arabia –5 November 2020: Alandalus Property (the “Company”) (Tadawul:
4320) - a pioneering real estate company involved in the investment, development and operation of income-generating properties across the Kingdom of Saudi Arabia - today announced its interim financial results for the third quarter ending 30 September 2020.
According to the financial results of the Company, the net profit during Q3, 2020 stood at SAR 3.13 million, versus a net profit of SAR 14.59 million for Q3, 2019, a decrease of 78.55%. This is mainly driven by the provision for discounts to tenants of malls and retail shops due to corona virus (Covid-19). This decline also came as a result of an increase in the financing cost due to funding the acquisition of a new office building in Riyadh.
The net profit during the current period of year 2020 decreased by 82% to SAR 8.89 million, compared to SAR 49.99 million for the same period last year.
Total revenues decreased by 12% during the current period of year 2020 due to a decrease in the retail sector revenues by 22% due to setting a provision for discounts to the tenants as a result of temporary shutdown of the Company’s malls and commercial centers due to precautionary measures in combating corona virus (Covid-19) pandemic. In addition, the hospitality sector revenues declined by 46% due to lower current occupancy rates of the hotel compared to the previous year rates. Also, revenues decreased despite higher revenues of the office sector represented by the office tower in Jeddah, which was acquired in August 2019, and the new office building in Riyadh, which was acquired at the end of June 2020.
The Company’s operating profit stood at SAR 11.74 million in Q3, 2020, versus SAR 26.05 million for the same quarter of the previous year. The operating profit for the current period also decreased by 61.42% to SAR 31.08 million, compared to SAR 80.56 million for the same period of the previous year. This is mainly driven by a decrease in revenues, especially in the retail and hospitality sectors, and losses in the book value of some of the Company's real estate assets, in addition to lower share of the Company in the profits of associate real estate companies due to shutdown of its malls and higher financing cost.
Commenting on the financial results, Mr. Hathal Al Utaibi, Chief Executive Officer , said: “ through our business approach and despite the challenges facing the retail and hospitality sectors due to the ongoing repercussions of the pandemic, we continue to take many measures to boost the operating efficiency and consequently minimize the impact of the pandemic on the Company's results. Moreover, the growth in the Company's office sector as a result of the acquisition of "Quebec" tower in Riyadh through Alahli REIT1 will contribute to enhancing the Company's revenue, which will positively reflect on its financial results.
In addition, we at Alandalus Property are still committed to implementing our strategy and achieving our vision by improving the visitors' experience in our centers and providing an interactive atmosphere that would make it one of their favorite destinations, especially when opening and operating future projects of the Company and its subsidiaries, which will, God willing, positively reflect on the Company's performance and results in the future and achieving the aspirations of our shareholders”.
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About Alandalus Property:
Established in 2006, Alandalus Property (TADAWUL: 4320), is a Saudi Arabian real estate company involved in the investment, development and operation of income-generating commercial properties across the Kingdom of Saudi Arabia.
In late 2015, Alandalus became the first mall investor, developer, and operator in Saudi Arabia to be listed on Tadawul and today the Company’s business portfolio spans shopping malls, property management, hospitality, healthcare and other complementary mixed-use developments. The company’s property portfolio extends across major Saudi Arabian cities, covering a significant amount of commercial space generating high occupancy rates.
Alandalus looks to develop diversified, high-quality properties that foster loyalty, visit frequency and long-term economic value, whilst establishing the company as the preferred third place destination, after home and work.
For more details on Alandalus Property, please visit http://www.alandalus.com.sa For further information, contact:
Alandalus Property Abdulrahman Al Shaya
Phone: +966 11 4700735 Ext. 800 Email: [email protected]
