Riyadh – Mubasher: Asas Makeen Real Estate Development and Investment Company reported a net profit of SAR 40.79 million in the first half (H1) of 2026, representing a 29.65% decline from SAR 57.98 million in H1-25.
Earnings per share (EPS) fell to SAR 1.36 in H1-26 from SAR 1.93 in H1-25, according to a bourse filing.
The decline in profitability occurred despite a 59.03% surge in total revenue, which reached SAR 213.28 million in H1-26 compared to SAR 134.11 million a year earlier.
The company attributed the revenue growth to the contracting and third-party development sector, where income rose 226% to SAR 124.90 million due to increased project completion rates.
Additionally, administrative services and rental income grew 178% to SAR 5.60 million in January-June 2026.
However, the bottom line was pressured by lower profit margins on real estate sales following discounts offered on several units.
Asas Makeen cited rising financing costs related to bank facilities as a factor in the profit decrease.
Total shareholders' equity increased by 28.48% to SAR 510.35 million as of 30 June 2026.
The financial results also reflected a change in accounting policy for investment properties from the cost model to the fair value model.
It is worth noting that in May 2026, Asas Makeen recommended a 200% capital hike through the issuance of bonus shares.
