Saudi’s Dar al-Arkan Q2 Net Profit Up 17%, Misses Forecasts

Dar al-Arkan, Saudi Arabia’s largest real estate developer by market value, reported a 17 per cent rise in second-quarter net income on Sunday but widely missed analysts’ forecasts.

Net profit in the three months to June 30 was SAR121.3 million ($32.3 million) compared to 103.7 million in the same period a year earlier, it said in a bourse statement.

It attributed the rise to higher sales of properties at higher profit margins. It said higher non-operating income was offset by increases in payrolls, consultancy fees and higher finance charges.

Six analysts polled by Reuters had forecast, on average, that Dar al-Arkan would record net profit of SAR209.8 million in the quarter.

In May, the developer raised $400 million through an Islamic bond, with strong demand for the paper helping to reduce the cost at which it borrowed to 6.5 per cent.