EZDAN (ERES) Q2 2024 earnings summary

Executive summary

• Net profit attributable to owners reached QR 177 million for H1 2024, up from QR 161 million year-over-year, with EPS rising to QR 0.007.

• Rental income and other operating revenue declined by 5.5% year-over-year, mainly due to lower residential and commercial property revenues.

• Operating profit from main operations was QR 745 million, down 4.3% from QR 779 million, impacted by lower rental income and higher impairment of receivables.

• Residential rental rates declined post-World Cup 2022, with all new units now fully available in the market.

• The Group's main activities are real estate management and rentals, with operations in Qatar and the UK.

Financial highlights

• Rental income was QR 866 million, down 5.5% from QR 916 million year-over-year.

• Operating profit: QR 745 million, down 4.3% year-over-year.

• Net profit margin improved to 20.4% from 17%; operating gross margin rose to 82% from 81%.

• General and admin expenses fell by QR 12 million, mainly due to lower legal fees.

• Finance costs decreased by QR 64 million, or 11%, supporting net profit growth.

Outlook and guidance

• No new residential units are in the pipeline, with the current supply fully injected into the market.

• Rental rates are expected to remain normalized post-World Cup, with no exceptional events impacting rates.

• The Group approved a proposal to sell certain investment properties to enhance cash flow, pending further decisions.