Alandalus Property Swings to 27.23M SAR Profit

Jeddah, Saudi Arabia — Alandalus Property Co. reversed a 10.39 million SAR loss to post a 27.23 million SAR net profit in the nine months ending 30 September 2026. That swing — from deep red to solid black — was driven by surging operating profit, stronger occupancy across all assets, and improving results from equity-accounted investees.

Revenue for the nine-month period rose 24.4% to 212.36 million SAR, up from 170.69 million SAR a year earlier. Gross profit climbed 36.7% to 139.47 million SAR. Operating profit more than doubled, jumping 117.9% to 90.92 million SAR. Shareholders’ equity edged up to 978.54 million SAR from 959.57 million SAR.

Third Quarter: Sharp Profit Jump Continues

Alandalus Property delivered another strong quarter in isolation. Third-quarter net profit attributable to shareholders reached 14.92 million SAR, up from just 0.58 million SAR in the same quarter last year — a 2,472% increase. Revenue rose 18.6% year-on-year to 71.57 million SAR, and operating profit surged 88.1% to 36.28 million SAR.

Compared to the second quarter of 2026, net profit rose 41.6% from 10.54 million SAR. Revenue grew a modest 2.4% quarter-on-quarter. The key driver of sequential profit growth was a jump in the Group’s share of results from equity-accounted investees — from 5.92 million SAR in Q2 to 12.3 million SAR in Q3 — as Dr. Sulaiman Al Habib Hospital (Al Fayhaa) turned operationally profitable.

Key Drivers

• Hospitality turnaround: DoubleTree by Hilton AlAndalus Mall revenue jumped roughly 110% year-on-year in Q3 and 62% over nine months, following completed renovation works and higher occupancy.
• Office segment growth: Qubic Plaza and improved occupancy at Salama Tower pushed office revenue up approximately 33% in Q3 and 31% over nine months.
• Retail resilience: AlAndalus Mall supported a roughly 7% quarterly and 18% nine-month revenue increase in the Retail and Operations segment.
• Investee improvement: West Jeddah Hospital Company and Al Hayat Real Estate Company both contributed positively over nine months, reversing prior-year drags.
• Lower finance costs: Reduced financing expenses supported both quarterly and nine-month profit improvement.
• Partial offsets: Higher general and administrative expenses, increased Zakat charges, higher marketing costs, and a larger expected credit loss provision tempered gains.

Land Acquisition After Period End

On 19 October 2026, Alandalus Property’s wholly owned subsidiary, AlAndalus Logistics Facilities Company, acquired a logistics-designated plot of land in Riyadh for 83.8 million SAR. The purchase was financed through a Tawarruq facility from a local bank. The transaction falls outside the nine-month reporting period but signals active capital deployment into the logistics real estate sector.

What This Means for Investors

• Profitability is real, not a one-quarter event. Three consecutive profitable quarters and a full nine-month swing from loss to profit suggest the turnaround has substance, not just timing luck.
• Asset quality is improving. Occupancy gains across the mall, offices, and hotel indicate operational momentum, not just accounting adjustments.
• Investee income adds volatility. A jump from 5.92 million SAR to 12.3 million SAR in one quarter from equity-accounted investees is material — and could swing both ways in future quarters.
• The Riyadh land deal introduces new risk. An 83.8 million SAR logistics acquisition funded by debt adds leverage. Investors should watch how quickly that asset generates cash flow.

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THE SAUDI STANDARD’S VIEW: ALANDALUS PROPERTY’S TURNAROUND SIGNALS BROADER REAL ESTATE MOMENTUM

Alandalus Property’s shift from loss to profit across nine months is not a statistical anomaly — it reflects a deliberate operational overhaul bearing measurable results. For investors tracking Saudi real estate equities, the company’s performance offers a case study in how asset renovation, occupancy discipline, and strategic investee positioning can compound into meaningful financial recovery within a compressed timeframe.

• HOSPITALITY AND OFFICES LEAD A BROAD-BASED RECOVERY

The dramatic revenue acceleration in the hospitality segment, following the completion of renovation works, demonstrates that capital reinvestment in underperforming assets can unlock substantial yield improvements when Saudi tourism and business travel demand is structurally rising. The office segment’s consistent occupancy gains across multiple properties suggest demand for quality commercial space in Jeddah remains firm. Together, these segments provide a diversified earnings base that reduces single-asset concentration risk for shareholders.

• EQUITY-ACCOUNTED INVESTEES: OPPORTUNITY AND EARNINGS VARIABILITY

The activation of Dr. Sulaiman Al Habib Hospital as a profitable contributor represents a meaningful inflection point, converting a previously dormant investee into a recurring income stream. However, the sharp quarter-on-quarter swing in investee income underscores that this line item carries inherent variability and will require careful monitoring across coming reporting periods. Investors should treat investee contributions as a supplementary earnings layer rather than a structural foundation when valuing the business.

• LOGISTICS EXPANSION REFRAMES THE COMPANY’S GROWTH NARRATIVE

The acquisition of a logistics-designated plot in Riyadh marks a strategic pivot beyond the company’s traditional hospitality, retail, and office footprint into one of the most actively developing real estate sub-sectors in the Kingdom. Debt-financed land purchases carry execution risk, particularly during the pre-revenue development phase, and the timeline to cash generation from this asset will be a key metric for investors to benchmark against management’s capital allocation discipline. The Riyadh positioning is nonetheless geographically sound, given the capital’s expanding role as a logistics and commercial hub.

• COST PRESSURES REMAIN A STRUCTURAL WATCH ITEM

Rising general and administrative expenses, higher Zakat charges, increased marketing costs, and a growing expected credit loss provision collectively represent headwinds that must be managed carefully as the company scales revenue. Profit growth that outpaces revenue growth — as seen in the operating line — is encouraging, but sustained margin expansion will depend on management’s ability to hold cost inflation below revenue growth rates. Investors should scrutinize the cost structure in forthcoming quarterly disclosures for early signs of overhead creep.

Alandalus Property’s trajectory aligns directly with Vision 2030’s ambition to transform Saudi Arabia into a diversified, asset-intensive economy supported by world-class hospitality, commercial real estate, and logistics infrastructure. As the Kingdom accelerates inbound tourism targets, expands Riyadh’s role as a regional business capital, and builds out last-mile and warehousing capacity, companies with cross-sector real estate exposure are strategically positioned to capture compounding demand. Alandalus Property’s evolving portfolio — spanning malls, hotels, offices, healthcare investees, and now logistics — reflects precisely the kind of multi-vertical real estate model that Vision 2030’s economic diversification agenda is designed to reward.