Jabal Omar Development, a Riyadh-listed real estate company swung to a third quarter loss as revenue from the sale of residential units plunged.
The developer reported a net loss of 80.62 million Saudi riyals (Dh78.95m) for the three months to the end of September, compared to a profit of 469.62m riyals in the third quarter of 2018, the company said in a statement on the Saudi stock exchange, where its shares are traded.
Revenue for the third quarter plunged 81.8 per cent to 240.29m riyals year-on-year.
“The reason for the net loss incurred during the current quarter compared to the same quarter of the previous year is a decrease of revenue from sales of residential units as the revenue in the previous quarter of last year included the one-off bulk sale of residential units,” the company said.
In the nine months to September 30, the company reported a loss of 49.25m Saudi riyals compared to a profit of 192.3m riyals during the same period last year. Revenue during the period dropped 58 per cent to 714.93m riyals year-on-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.
Construction companies in the region have faced headwinds as the property market slowed after a three-year oil price drop that began in 2014.
In a report this week JLL said the residential market in Riyadh continued to soften during the third quarter with apartment and villa sale prices dropping 6 per cent and 5 per cent, respectively, year-on-year.
The report also said the Jeddah residential market remained "weak" during the third quarter due to a slowdown in economic activity and softening demand. Rental rates of apartments and villas also declined at a rate of 1 per cent during the period.
