Dar Al Majed Real Estate Company (Al Majdiah), a leading Saudi real estate developer and community builder, Al Majdiah has posted a nine-month (9M) revenue growth of 16.1% to $691.7 million. 

However, its net profit attributable to parent shareholders fell steeply to $91.0 million in 9M 2026, compared with $249.1 million in 9M 2025.

The company continued to advance its development portfolio and expand its recurring income base, supporting its long-term growth strategy.

Integrated platform

“I am proud to lead Al Majdiah into its next phase of growth. Our integrated platform, presence in key Saudi markets and dedicated team provide a foundation for the future. I look forward to working with the team to build on these strengths and advance the company’s strategic ambitions. The progress achieved during Q3 2026 reinforces my confidence in the business. Revenue excluding land sales grew by 16.1% year on year over the first nine months, reflecting the strength of our core activities. As we look ahead, our focus remains on delivering developments, deepening customer trust and pursuing opportunities that support sustainable growth.

“Saudi Arabia’s evolving residential market presents opportunities, and I am optimistic about Al Majdiah’s ability to contribute. With a clear strategy and a disciplined approach to execution and capital allocation, we are well positioned to create value for our customers, shareholders and partners,” said Al Majdiah Chief Executive Officer Raed bin Mohammed Al Naeem.

Revenue excluding land sales grows

Revenue excluding land sales grew 16.1% YoY in 9M 2026, supported by 15.9% YoY growth in property-unit revenue and higher development and rental income. Reported revenue declined 24.0% YoY to $691.7 million in 9M 2026, reflecting $314.5 million of land sales in 9M 2025. Q3 2026 revenue decreased 10.0% YoY to $195.2 million, with no land sales in either Q3 2026 or Q3 2025, as development and rental growth partly offset lower property-unit and commission revenue.

Gross profit reached $184.1 million in 9M 2026, with a 26.6% margin, compared with $353.1 million and 38.8% in 9M 2025.

The absence of $106.2 million of land-sale profit recorded in 9M 2025 and $46.8 million lower revaluation gains in 9M 2026 explained approximately 91% of the YoY decrease. Property-unit margins moderated to 18.4% in 9M 2026 from 25.6% in 9M 2025, partly offset by 95.0% YoY growth in rental profit. Q3 2026 gross margin was 22.1%, compared with 36.3% in Q3 2025, reflecting lower property-unit margins.

Operating expenses fell 18.5% YoY to $54.9 million in 9M 2026, delivering $12.4 million of savings compared with 9M 2025.

Excluding land-sale profit and investment-property revaluation gains from both periods, operating profit was $122.0 million in 9M 2026, compared with $125.6 million in 9M 2025, supported by the lower operating cost base. Reported EBITDA reached $141.7 million at a 20.5% margin in 9M 2026. Q3 2026 EBITDA was $22.3 million at an 11.4% margin, with operating expenses down 2.0% YoY.

Finance costs increase

Alongside the gross-profit movements, finance costs increased by $14.9 million YoY in 9M 2026, absorbing part of the operating cost savings. Q3 2026 net profit reached $10.6 million, down 71.2% YoY, versus a 70.5% YoY decline in operating profit. Lower finance costs and higher financial-asset valuation gains in in Q3 2026 softened the impact, partly offset by lower other income and higher zakat.

Operating cash flow remained positive at $21.6 million in 9M 2026, compared with $104.5 million in 9M 2025. At the end of 9M 2026, contract assets stood at $366.5 million, reflecting revenue recognised ahead of billing and collection. Bank borrowings were $1.29 billion at the end of 9M 2026, while cash and cash equivalents stood at $35.3 million, alongside $139.5 million in restricted project accounts.

Project portfolio

As of September 30 2026, Al Majdiah’s total project portfolio comprised 40 projects, including eight in closing and handover. The active development pipeline increased to 32 projects from 31 at June-end, comprising 11 in planning and design and 21 in execution. The increase in projects in execution, from 19 at June-end, reflects the continued advancement of the development programme.

The portfolio spans five cities, with 33 projects in Riyadh, three in Makkah, two in Jeddah and one each in Madinah and Al Khobar. Across these projects, the portfolio comprises 7,033 units, including projects developed for third parties. This footprint combines an established presence in Riyadh with developments in the Western Region and Al Khobar, across residential, commercial and mixed-use assets.

During Q3 2026, Al Majdiah 188 advanced from planning and design into execution, and Al Majdiah 199 was added to the execution-stage portfolio. Al Majdiah 145 and 155 moved from closing to completed status. These changes reflect progression through the project lifecycle: the active pipeline expanded even as the total portfolio moved from 41 projects at June-end to 40 at September-end.

Off-plan development

Off-plan development remained the largest contributor to property-unit revenue, accounting for $466.7 million, or 79.6%, of 9M 2026 property-unit sales. Revenue is recognised as development progresses. Off-plan contract assets increased to $291.3 million from $105.4 million at year-end 2025, representing recognised revenue not yet billed or collected under the relevant contracts. Project execution and cash collection therefore remain closely linked priorities.

Al Majdiah’s development and commission activities generated combined revenue of $66.8 million and gross profit of $51.5 million in 9M 2026. In Q3 2026, combined revenue increased by 10.3% YoY to $24.1 million and gross profit rose 8.2% to $18.0 million when compared with Q3 2025. These activities complement the company’s owned developments through services provided to project partners and third-party clients.

Recurring rental income continued to expand, reaching $20.2 million in 9M 2026, with rental profit of $17.6 million. Investment properties had a carrying value of $462.4 million at 9M 2026 end, compared with $434.6 million at year-end 2025. The movement included $23.6 million transferred from property inventory, supporting the continued development of the income-generating portfolio alongside residential sales and development services.—TradeArabia News Service