Al Akaria Saudi Real Estate Company (Sreco), one of the largest publicly listed real estate developers on the Saudi stock exchange (Tadawul), has posted SR30.27 million ($8.23 million) net profit for the second quarter, up 46.16 per cent over last year.

Announcing the financial results for the second quarter, Sreco said the company improved its gross margins to 70.4 per cent during the quarter from last year's 67.5 per cent, thanks to a surge in revenues which hit Dh83.1 million, up 5.7 per cent compared to last year.

The net profits were also boosted by gains from revaluation of derivative financial instruments amounting to SR5.4 million compared to losses of SR6.3 million during the same period last year.

In line with the company’s strategy to become a developer of large-scale integrated communities, Sreco had recently announced plans for Al Widyan, a 7-million-sq-m mixed-use development in a strategic location of Riyadh.

The Saudi group had announced in May a recommendation to double its share capital by issuing one bonus share for every share. This means that the number of outstanding shares rose from 120 million to 240 million.  

On the results, CEO Mamdouh Al Sharhan said: "We are glad to report a net profit of SR74.9 million in first half, representing an uplift of 5.17 per cent compared to the same period last year."

"Our strong financial performance for the second quarter reflects the successful execution of our strategy, strong leadership, clear vision and, importantly, robust financial stability, which provide necessary foundations from which to build a new era of integrated lifestyle communities," he stated.

Founded in 1976 by a royal decree, Sreco is partially owned by the government of Saudi Arabia through the Public Investment Fund (PIF) with a 65 per cent stake and the Public Pension Agency (PPA) with 5 per cent.

From its headquarters in the capital Riyadh, the company offers an integrated, full-service approach to real estate development, encompassing finance, design, construction, facility and property management.

"We are excited to be part of Vision 2030 with our latest project announcement, Al Widyan, which will provide a good quality of life, a healthy lifestyle and an attractive living environment for all its residents, offering a new paradigm for community living in Saudi Arabia," remarked Al Sharhan.

Sreco, he stated, was reforming as a progressive, visionary company at the forefront of the nation’s intent to undertake a historic transformation.

"With aspirations to become a global real estate developer and a major contributor to the kingdom's urban development, Sreco offers an integrated, full-service approach to real estate development," he noted.

"The company’s portfolio includes a number of residential, commercial and innovative office buildings that enrich the real estate landscape in Saudi Arabia," he added.

According him, Akaria had worked on more than 32 residential, retail and commercial developments including several ground-breaking projects such as Akaria 1, the first commercial centre in the Middle East, the Olaya Akaria Residential Complex, the first closed residential complex in Saudi Arabia, and The Plaza, the first smart building in Saudi Arabia.

The group aims to become a flag bearer for Saudi Arabia's Vision 2030 by developing new and innovative model communities within the kingdom and abroad, he added.-TradeArabia News Service