Arriyadh Development, the leading Saudi Arabia-based real estate developer, published its financial results for the year 2018, where it has been shown that the company made a net profit of $54m, indicating an 8% drop from the net profit of 2017.
Although Arriyadh Development stated before that it has witnessed an upsurge in its rental income in 2018, the shrunk profit can be attributed to the company’s decreasing land sales; as a matter of fact, the entire sales revenue which Arriyadh Development generated in 2018 was 9% less than that of 2017.
In response to the decreased financial figures, Arriyadh Development commented that it will work on increasing the publicly available shares; as per the its board of directors’ advice, the company will increase the publicly available shares from 1.3 million to 1.7 million shares to help support and boost its position.
In the current time, the shares of Arriyadh Development are valued at $5.3 each in the Saudi Stock Exchange, and with the intended increase in shares, the developer can generate up to $118m to nurture its own growth.
Arriyadh Development’s financial results come as yet another indicator for how 2018 was one of the lowest-performing years of the Saudi property market.