Dar Al Arkan profits boosted by improved rents
Developer says rental income since start of 2012 has increased by 139%
Dar Al-Arkan Real Estate Development Co announced that profits for the nine months to September 30 increased by 5.8% to $225.2m.
The Riyadh-based company also said that third-quarter earnings were slightly weaker at $60.7m - a decline of almost 3% on the same period in 2011.
Dar Al Arkan was founded in 1994 by six prominent business families in the city. It specialises in the development and masterplanning of housing-led schemes across the country.
The company said that the higher profit for the year to date was due to increased sales, which it attributed to "improved demand" for houses within its schemes, as well as its own efforts to increase revenues and improve its liquidity.
It said that rental income had increased by 139% since the start of the year due to the fact that occupancy levels had increased at its Al Qasr project in the Al-Swaiyadi district of Riyadh.
An analysts' report by NCB Capital states that it expects the firm to achieve full-year revenues of $397.6m - an amount that was revised downwards earlier this year due to delays at its Shams Arriyadh project.
Its overall estimate for revenues for 2012 is $1.025bn - a 16% increase on 2012, which it says is largely due to a large land sale deal agreed with Saudi Basic Industries Corp.