Riyadh, Saudi Arabia — Riyadh Development Company (“Al-Tameer”) posted a 28.6% year-on-year decline in Q2 2025 net profit, dropping to SAR 65.63 million from SAR 91.92 million in Q2 2024. However, profit rose 65% quarter-on-quarter from SAR 42.07 million in Q1 2025, supported by investment gains.

Al-Tameer Q2 Profit Declines YoY but Recovers QoQ on Fund Revaluation

Revenue fell 5.38% to SAR 72.89 million, mainly due to the absence of SAR 24 million in land sales from affiliate Tanal and SAR 26 million in reversed provisions recorded in the previous year. A SAR 15 million gain from revaluing its stake in the Al-Arabi Riyadh Real Estate Development Fund helped lift quarterly earnings.

Al-Tameer H1 Performance Reflects Land Sale Volatility

Net profit for the first half of 2025 declined 33.7% to SAR 107.7 million, while total revenue dropped 8.38% to SAR 142.43 million. A continued shortfall in land sale contributions largely drove the fall.

What This Means for Investors

  • Operational stability: Core business remained steady despite volatility in non-recurring revenue streams.
  • Non-core gains: Investment fund revaluation helped offset weak land-related income but should not be considered recurring.
  • Real estate exposure: Earnings remain tied to the timing and size of affiliate transactions and accounting provisions.
  • Mixed signals: While quarterly gains show adaptability, the annual decline highlights dependency on episodic revenues.

 

 

THE SAUDI STANDARD’S VIEW: Strategic Repositioning Reflects Long-Term Value Focus in Real Estate

Riyadh Development Company’s Q2 2025 results highlight a shift toward long-term value creation. Although Al-Tameer Q2 profit fell year-on-year, the 65% quarterly rebound and SAR 15 million revaluation gain point to an evolving strategy centered on stability and diversification.

  • Non-recurring drag: The absence of SAR 50 million in land sales and provisions from Q2 2024 illustrates the irregular nature of some income sources. Excluding these, core operations held firm, underscoring asset efficiency.
  • Portfolio strength: The profit recovery in Q2 was supported by returns from the Al-Arabi Real Estate Fund. This reflects Al-Tameer’s shift toward a balanced model combining development with institutional real estate exposure.
  • Market recalibration: The H1 earnings dip reflects broader trends in Saudi real estate. The focus is moving from quick land sales to structured, value-driven development aligned with Vision 2030.
  • Strategic evolution: Al-Tameer is adapting to a new real estate landscape defined by recurring income, fund-based returns, and asset sustainability. This mirrors the sector’s growing maturity across the Kingdom.

In conclusion, the Al-Tameer Q2 profit results reveal a company in transition—moving from transactional gains to a more resilient, diversified revenue base. This approach aligns well with the Kingdom’s evolving real estate vision and long-term economic goals.

 

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