Al-Akaria Saudi Real Estate Company (SRECO), a publicly listed real estate developer on the Saudi stock exchange (Tadawul), has reported its financial results for the second quarter of 2018. SRECO posted a net profit of SR30.27 million ($8.23 million) in Q2 2018, representing an increase of 46.16 percent compared to the same period last year. The company improved its gross margins during the quarter to 70.4 percent (67.5 percent in 2017) driven by the increase in revenues to SR83.1 million, up 5.7 percent compared with the same period last year. Net profits were also boosted by gains from revaluation of derivative financial instruments amounting to SR5.4 million compared to losses of SR6.3 million in Q2 2017.
In line with the company’s strategy to become a developer of large-scale integrated communities, SRECO announced plans for Al-Widyan, a seven-million-square-meter mixed-use development in a strategic location of Riyadh.