Arabian Centers’ profits drop 18.3% to 90.8 million riyals

Preliminary financial results of the Arabian Centers Company showed a drop in its net profit after zakat and taxes, of 18.27% in the third quarter of questyear, at 90.8 million riyals, compared to a net profit of around 111.1 million riyals in the same quarter of 2020.

On a quarterly basis, Arabian Centers’ net profit decreased 28.1% compared to a net profit of approximately 126.3 million riyals in the second quarter of quest’year.

The company stated in a statement to “Tadawul Saudi”, today, Thursday, that the decline in its profits in the third quarter of 2021, on an annual basis, is due to several reasons, including the high cost of revenues, driven by the return of costs to levels normal before the crisis of the emerging Coronavirus epidemic, compared to the same quarter of the last fiscal year, which saw an exceptional reduction in variable costs in significantly following the closure of the affiliated shopping centers and restrictions on circulation and circulation as part of the precautionary measures to contain the spread of the virus. With the return to normal of operational activities in shopping centers in concurrent with the easing of precautionary measures, and the third quarter of 2021 also saw an increase in operating expenses, including cleaning and security services.

He stressed the increase in depreciation expenses of real estate investments and depreciation expenses for the right to use the assets against the background of the intensification of operating activities with the assets, which the company managed to launch, represented by the expansion of Al Nakheel Mall in Riyadh, Yowook Center in Riyadh and Al Nakheel Mall in Dammam.

The company’s profits fell 17.8% in the first nine months of questyear, at 217.1 million riyals, after zakat and taxes, compared to 264.2 million riyals in the same period of 2020.

AND in a separate statement, Arabian Centers Company announced the cancellation of the deed of ownership of the land it owns, located in King Khalid Road, intersection of Al-Orouba Road in the Al-Raed district of Riyadh, by a judicial decision.

He said he is currently working to take all legal and judicial steps in order to recover the property or price from the seller.

Arabian Centers have indicated that they have purchased the land for 1,770 million riyals through legal and regulatory procedures and have incurred expenses related to development work to establish a shopping center project on this land, approximately 628 million riyals to date – after approval of the final project plan and the obtaining of approximately 15 building permits from the Royal Commission for the City of Riyadh.

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