Announcement of Dar Al Majed Real Estate Company Interim Financial Results for the Period Ended 30 June 2026 (Six Months)

Al Majdiah reported a net profit of SAR 80.3 million for H1 2026, representing a 62.1% YoY decrease from SAR 212.2 million in H1 2025. This decline primarily reflects a high comparative base in the previous year, which included SAR 314.5 million in land sales and significant revaluation gains; excluding these non-recurring items, underlying net profit actually rose by 46.3% YoY.
Total revenue for H1 2026 reached SAR 496.4 million, a 28.4% YoY decline driven by the absence of land sales recorded in the prior period. However, core revenue from property unit sales grew by 33.3% to SAR 426.2 million, and rental revenue surged 159% to SAR 13 million, signaling a successful strategic shift toward off-plan sales and recurring income streams.
The company maintained an active development pipeline of 31 projects out of a total portfolio of 41, highlighted by its participation in the SAR 2 billion Eastern Hindawiyah urban development project in Makkah. Geographic expansion continued with a new sales center in Jeddah and ongoing projects in Riyadh, Madinah, and Al Khobar to capture regional demand.
Operational efficiency improved as combined general, administrative, and marketing expen

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	288,235,844	424,623,539	-32.119	208,209,879	38.435
Gross Profit (Loss)	72,559,626	134,565,822	-46.078	68,442,953	6.014
Operational Profit (Loss)	55,452,530	110,999,920	-50.042	59,115,486	-6.196
Net Profit (Loss) Attributable to Shareholders of the Issuer	41,664,333	110,310,530	-62.229	38,662,885	7.763
Total Comprehensive Income Attributable to Shareholders of the Issuer	31,381,940	108,806,489	-71.158	36,594,829	-14.244
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	496,445,723	693,048,313	-28.367
Gross Profit (Loss)	141,002,579	274,203,146	-48.577
Operational Profit (Loss)	114,568,016	235,942,447	-51.442
Net Profit (Loss) Attributable to Shareholders of the Issuer	80,327,218	212,218,222	-62.148
Total Comprehensive Income Attributable to Shareholders of the Issuer	67,976,769	226,318,607	-69.964
Total Shareholders Equity (after Deducting Minority Equity)	1,155,546,084	1,102,612,432	4.8
Profit (Loss) per Share	0.27	0.71
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	7,069,242	2.4
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Despite an 81.1% increase in revenue from the sale of property units to SAR 257.1 million, compared to SAR 142 million, and a 224.8% increase in lease revenue to SAR 7.1 million, compared to SAR 2.2 million in the same quarter of the previous year, total revenue declined by 32.1% during the current quarter compared to the same quarter of the previous year. This was due to the recognition of SAR 242.2 million in revenue from land sales in the same quarter of the previous year. Excluding land sale revenue, total revenue increased by 58%.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Net profit attributable to the shareholders of the parent company declined by 62.23% during the current quarter compared to the same quarter of the previous year, as a result of recognizing SAR 72 million in profit from land sales during the same quarter of the previous year. Excluding the impact of profit from land sales, net profit attributable to the shareholders of the parent company increased by 8.8% compared to the same quarter of the previous year, reaching SAR 41.6 million, primarily driven by higher profit from the sale of property units and rental revenue.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	Total revenue increased by 38.4% during the current quarter to reach SAR 288.2 million, compared to SAR 208.2 million in the previous quarter. This increase was primarily driven by higher revenue from the sale of property units and rental revenue, reflecting the Company's improved operating performance.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	Net profit increased by 7.7% during the current quarter, representing an increase of SAR 3 million compared to the previous quarter. This increase was primarily driven by higher revenue from the sale of property units and rental revenue compared to the previous quarter.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	Despite a 33.3% increase in revenue from the sale of real estate units to SAR 426.2 million, compared to SAR 319.7 million in the same period of the previous year, and a 159% increase in rental revenue to SAR 13.0 million, compared to SAR 5 million in the same period of the previous year, total revenue declined by 28.4% during the current period compared to the same period of the previous year. This was due to the recognition of SAR 314.5 million in revenue from land sales during the same period of the previous year. Excluding land sale revenue, total revenue increased by 31.1%.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	Net profit attributable to the shareholders of the parent company declined by 62.1% during the current period compared to the same period of the previous year. However, after excluding the impact of profit from land sales and gains from the revaluation of investment properties, net profit increased by 46.3%. This increase was primarily driven by: • A 23.4% increase in profit from the sale of property units to SAR 87.7 million. • A 184.4% increase in profit from rental activities to SAR 11.4 million. • A 30.9% reduction in general and administrative expenses and selling and marketing expenses combined, to SAR 26.4 million, reflecting enhanced operating efficiency and disciplined cost management.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	N/A
Reclassification of Comparison Items	Certain comparative figures for the previous period have been reclassified to conform with the current period. These reclassifications have no impact on net profit, retained earnings, or the condensed consolidated financial position.
Additional Information	-
Attached Documents	Attached Documents