4 factors behind the decline in the profits of “Andalus Real Estate” in the third quarter of 78.5%

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Riyadh – Mubasher: The financial results of Al-Andalus Real Estate – Al-Andalus showed a decline in its net profits during the third quarter of this year, by 78.5% on an annual basis.

According to the company’s financial statements today, Thursday, on the Saudi Stock Exchange – “Tadawul”, the net profit amounted to about 3.13 million riyals, compared to 14.6 million riyals in the same quarter of last year.

The company attributed the reason for the decrease in net income for the current quarter compared to the same quarter to 4 factors, most notably the decrease in revenues as a result of the formation of discounts allocations for the renters of malls and commercial centers during the current quarter due to the repercussions of the new Corona virus (Covid 19), which led to a decrease in the total profit.

The company’s revenues decreased by 13.44% during the third quarter to reach 37 million riyals, compared to 42.7 million riyals in the same quarter of last year.

The decrease in the company’s share in the profits of associates as a result of creating discounts allocations for tenants in the malls and commercial centers affiliated with them also led to a decrease in net profit, in addition to recording a loss in the value of some investment properties, and an increase in the cost of financing compared to the same quarter as a result of financing the acquisition of a new office building In Riyadh.

And the Andalus Real Estate Company turned to achieve losses of about 6.48 million riyals In the second quarter From this year, compared to 15.13 million riyals profits during the same quarter of 2019 due to 4 factors.

As for the level of the company’s profits during the first nine months of this year, it amounted to about 8.9 million riyals, compared to 50 million riyals for the same period last year, down by 82.22%.

Nominations:

4 factors turn Al-Andalus Real Estate Company into losses in the second quarter

“Al-Andalus” sells a plot of land to Al-Ahly REIT 1 fund for 43.5 million riyals







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