Dar Alarkan sees Q4 sales rise on higher demand
But real estate firm says full-year sales down almost a third on 2009
Dar Al Arkan Real Estate Development said that improved demand for land sales helped boost the company’s profits for the fourth quarter against the third.
Saudi Arabia’s biggest property firm by market value, which is also a contractor and supplier of building materials, said net profits rose 14.1% for the last three months of 2010.
But full-year sales remained sluggish, with net profits falling 31.4% due “to the low volume of sales of land and housing most of the period” as well as lower profit margin from the land and residential units that were sold.
The company saw net profits for the third quarter fall from SAR 616.2 million to SAR 289.6 million against the same period in 2009. Last month, Saud Al Gusaiyer, general manager, said the company is able to repay SR7.8 billion of debt maturing within five years without entering the bond market again.
These include a SR3.75 billion Islamic bond due in July 2012, one for SR750 million due in 2014 and another - SR1.7 billion - due in 2015.
Last February the company raised SR1.7 billion on the debts markets through a sukuk to the company’s policy of project expansion through “medium and long-term financing solutions”. Al Gusaiyer said the debts were minor compared to the company’s assets, which stood at around SAR 23 billion.
Dar Alarkan shares declined 1.49% yesterday in Riyadh to close at SAR 9.9., having broadly risen from a low of SAR 8.55 on 27th November.