Jabal Omar Development, a Riyadh-listed real estate company, swung to second quarter profit as revenue climbed due to sale of residential units and other income.
The developer reported a net profit of 30.1 million Saudi riyals (Dh29.4m) for the three months to June 30, compared to a loss of 147.4m riyals in the second quarter of 2018.
Revenue for the period surged 18.6 per cent to 297m riyals compared to 250.3m riyals during the same period last year.
“The reason for the net profit achieved during the current quarter compared with the same quarter last year is the increase in revenue due to sales of residential units, hotels revenue and other incomes,” the company said in a statement on Saudi stock exchange, where its shares are traded.
In the six months to June 30, the company reported a net profit of 31.6m Saudi riyals compared to a loss of 275.3m riyals during the same period last year. Revenue climbed to 474.6m riyals, from 392.4m riyals in the first six months of last year.
Jabal Omar, which is one of the biggest publicly-listed real estate companies in Saudi Arabia, is developing a multi-use mega-project spanning 2 million square metres near the Great Mosque in Makkah.
The company raised $135m through an Islamic bond last year to fund the development of property projects in and around Makkah.
Shuaa Capital, the UAE financial services group, was the sole arranger for the private placement of the five-year sukuk, according to a statement by Shuaa to the Dubai Financial Market on January 9.
Proceeds from the sukuk will help to diversify Jabal Omar’s capital base as it develops projects around Makkah, according to the statement, which did not specify which of the projects will be funded through the sale of Islamic bonds.
