Riyadh Development Company announces the preliminary consolidated financial results for the period ending 2026-06-30 (six months)

Riyadh Development Company reported a consolidated net profit of SAR 108.86 million for the six-month period ending June 30, 2026, representing a slight year-on-year increase of 1.1%, while quarterly net profit fell 11% to SAR 58.38 million compared to the same period last year.
Total revenue for the first half of the year grew 24.8% to SAR 177.78 million, driven primarily by gains from the partial sale of non-strategic land parcels and an increase in operating revenue.
The bottom line was constrained by significant non-recurring charges, including a SAR 20 million litigation provision related to a 2004 lease agreement and a SAR 19 million provision for White Land Tax recognized during the period.
Operational performance was bolstered by a building reverting to the company’s ownership upon the expiry of a Build-Operate-Transfer (BOT) agreement and a 4.5% increase in total shareholders' equity, which reached SAR 4.18 billion.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	73.88	72.89	1.358	103.89	-28.886
Gross Profit (Loss)	47.8	51.8	-7.722	76.56	-37.565
Operational Profit (Loss)	0.78	34.95	-97.768	37.23	-97.904
Net Profit (Loss) Attributable to Shareholders of the Issuer	58.38	65.63	-11.046	50.48	15.649
Total Comprehensive Income Attributable to Shareholders of the Issuer	58.38	65.63	-11.046	50.48	15.649
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	177.78	142.43	24.819
Gross Profit (Loss)	124.36	94.43	31.695
Operational Profit (Loss)	38	60.66	-37.355
Net Profit (Loss) Attributable to Shareholders of the Issuer	108.86	107.7	1.077
Total Comprehensive Income Attributable to Shareholders of the Issuer	108.86	107.7	1.077
Total Shareholders Equity (after Deducting Minority Equity)	4,177	3,997	4.503
Profit (Loss) per Share	0.47	0.49
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Millions) 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	The company achieved revenue from main operations of SAR 73.9 million, an increase of SAR 1 million or 1.4 %, This is mainly attributed to Increase of operating revenue by SAR 1 million
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The company achieved a net profit of SAR 58.4 million, a de-crease of SAR 7.25 million, or 11%, despite a SAR 1 million in-creases in revenue from operating revenue. This was mainly attributed to the Recognition of a SAR 20 million a litigation provision in connection with a lawsuit filed against the Company relating to a lease agreement entered 2004. The provision reflects management's best estimate of the expected obligation, based on the facts and developments of the case, and has been recognized in accordance with the requirements of the applicable accounting stand-ards.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The company achieved revenue from main operations of SAR 73.9, a decrease of SAR 30 million, this is mainly attributed to the partial sales of the company’s non -strategic lands in the previous quarter.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The company achieved a net profit of SAR 58.4 million, an increase of 16%, This is mainly attributed to: 1- The increase of operating revenue by SAR 3 million. 2- A decrease in operating costs by SAR 1 million. 3- the recognition of a building that reverted to the Company’s ownership up-on the expiry of the land investment agreement under a Build-Operate-Transfer (BOT) arrangement. Despite the recognition of a SAR 20 million litigation provision in connection with a lawsuit filed against the Company relating to a lease agreement entered 2004. The provision reflects management's best estimate of the expected obligation, based on the facts and developments of the case, and has been recognized in accordance with the requirements of the applicable accounting standards
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The company achieved revenue from main operations of SAR 177.8 million, an in-crease of SAR 35.4 million This is mainly attributed to: 1- the partial sales of the company’s non-strategic lands. 2- The increase of operating revenue by SAR 2 million.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The company achieved a net profit of SAR 108.9 million, an increase of SAR 1.2 million, or 1% despite the recognition of a SAR 19 million provision for White Land Tax and recognition of a SAR 20 million a provision for legal claims during the period, this is mainly attributed to: 1- The recognition of gains from the partial sales of the company’s non-strategic lands. 2- The increase of operating revenue by SAR 2 million. 3- the recognition of a building that reverted to the Company’s owner-ship upon the expiry of the land investment agreement under a Build-Operate-Transfer (BOT) arrangement.
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)	None
Reclassification of Comparison Items	Reclassification of comparative figures compatible with the display tab for the current period.
Additional Information	The weighted average number of ordinary shares outstanding during Period of 2025 is the number of ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary shares issued during the period multiplied by a time-weighting factor. The time-weighting factor is the number of days that the shares are outstanding as a proportion of the (Note number of days in the period According to IAS 33 (Note No. 19 in the financial statement).