Saudi property developer Dar Al Arkan saw a 130% YoY jump in Q1 profits to SAR 28.5mn ($7.6mn). The profits grew even as sales fell 6% during the period to AED 554.8mn ($148mn). The higher profits were on account of “higher margin achieved on property sale.” Despite a fall in leasing revenue and increase in finance costs, the company achieved profitability by cutting operating costs. Profits were also higher on a quarterly basis by 128% with sales growth of 12% QoQ. With improved business confidence and the recovery from the pandemic, the company has seen a “turnaround in performance in all main segments of the real estate market.”
Dar Al Arkan, rated B1 saw its bonds unchanged – its USD 6.875% 2027s and USD 6.875% 2023s were at 100.63 and 105.2, yielding 6.74% and 3.91% respectively.
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