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Saudi's Alandalus Property posts 15.6pc growth in Q3 profit


Saudi-based Alandalus Property has registered a 15.6 per cent growth in its net profit for the third quarter ending September 30, 2019,  which rose to SR14.6 million ($3.9 million) from SR12.6 million ($3.35 million) the previous year. 
A pioneer in the investment, development and operation of income-generating properties across Saudi Arabia, Alandalus Property said its overall, net profit for the nine-month period ending September 2019 surged by 10.4 per cent to SR50 million from SR45.3 million last year. 
The increase in net profit was largely due to higher revenues and share of income from associate companies, it stated. 
Alandalus Property said the revenues for the nine-month period ending September 30, 2019 hit SR125 million, up 2% over SR123 million last year, while its profit for Q3 surged 5.5 per cent to SR42.7 million from SR40.5 million.
The company’s financial results also benefitted from a fall in Zakat provision, despite the downward pressure following the implementation of IFRS16 (leases), said the Saudi real estate firm in its report.
While Alandalus Property faced a challenging environment in its hospitality portfolio, its higher revenues this quarter were due to its office leasing segment, which saw revenues quadruple on a year-on-year basis and the steady growth across its retail segment, supported by the launch of Al Marwa Center in March. 
CEO Hathal Al Utaibi said Alandalus Property continued to experience steady growth across its retail, and office segments during the period. 
"We expect our growth and diversification efforts to gain momentum as our healthcare portfolio comes online with the launch of our joint venture with regional healthcare leader, Dr. Sulaiman Al-Habib Medical Group," he stated. 
“Our differentiated approach to the retail segment and continuous enhancements to our commercial destinations ensure our ability to effectively engage our diverse consumer base for the foreseeable future. With one of the largest cinemas in Jeddah set to open in our flagship property, Alandalus Mall, I’m confident that our retail sector will continue to deliver steady and healthy growth. Our robust hospitality and offices sectors are in advantageous positions to support this growth and continue to provide us with a competitive and diversified edge in the Saudi market,” he added.
In Q3 2019, Alandalus Property’s gross profit rose 6.6% to SR24.1 million, from SR22.6 million last year.
Despite higher operating costs associated with the launch the company’s offices portfolio, gross profit remained largely steady over the period ending September 30, at SR71.3 million, compared to SR71.5 million over the corresponding period in 2018. 
Alandalus Property’s operating profit also performed favourably in Q3 2019, increasing by 9.7% to SR26 million, compared to SR23.7 million in Q3 2018. 
Commenting on the results, Fawaz bin Huwail, the chief financial officer, said: "Alandalus Property’s diversified portfolio continues to deliver returns for its shareholders. The significant growth in our offices sector, driven by the acquisition of Salama Tower, and the substantial increase in our operating profits have contributed positively to our bottom line this quarter, despite the impact of IFRS16 (leases)."
"Looking ahead, we remain committed to prioritizing our stakeholder’s journey and experience, whilst we focus on optimizing costs across the business to maintain through-cycle resilience," he added.-TradeArabia News Service

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