EZDAN (ERES) Q1 2024 earnings summary

Executive summary

• Q1 2024 net profit was QR 95.5 million, up 4.8% year-over-year, with EPS at QR 0.004, a 5.9% increase.

• Rental income declined 6.8% year-over-year to QR 435 million, while operating profit fell 6.3% to QR 375 million.

• Total assets stood at QR 46.87 billion and total equity at QR 33.42 billion as of March 31, 2024.

• Operating profit from main operations was QR 375.2 million, down from QR 400.3 million in the prior year period.

• Comprehensive income was QR 96.2 million for Q1 2024.

Financial highlights

• Rental income decreased by QR 31.5 million year-over-year, mainly from residential and commercial properties.

• Operating expenses dropped 4% year-over-year to QR 85.2 million.

• Finance costs reduced by 2.6% year-over-year to QR 252.5 million.

• Cash and bank balances increased 14% sequentially to QR 423 million.

• Net cash from operating activities was QR 329 million, down 6% year-over-year.

Segment performance

• Residential and commercial rental revenue fell 11.4% year-over-year; hotel and suites revenue rose 39.3%.

• Operating expenses for hotels and suites increased 20.1% year-over-year, while residential and commercial expenses dropped 10.1%.

• Operating profit for residential and commercial properties declined 11.7% year-over-year; hotels and suites saw a 54.2% increase.

• Residential and commercial property segment contributed QR 39.1 million to profit, hotel and suites QR 40.1 million, and malls QR 18.1 million for Q1 2024.

• Segment assets: residential and commercial property QR 41.87 billion, hotel and suites QR 4.12 billion, malls QR 1.93 billion.