EZDAN (ERES) Q3 2024 earnings summary

Executive summary

• Net profit attributable to owners was QR 204.2 million for Q3 2024, down from QR 220 million year-over-year, a 7.1% decrease.

• Rental income and other operating revenue declined to QR 1.29 billion, a 4.4% decrease year-over-year.

• Operating profit declined 3.6% year-over-year to QR 1.1 billion.

• Total assets stood at QR 46.6 billion, with total equity at QR 33.7 billion as of September 2024.

• EPS remained at QR 0.008.

Financial highlights

• Rental income was QR 1.29 billion, down 4.4% year-over-year; operating expenses fell by 7.8%.

• Net profit margin was 15-16%, unchanged year-over-year.

• Finance costs dropped by 2.9% to QR 821 million.

• Cash and bank balances declined to QR 131 million, down 65% from year-end 2023.

• Operating gross margin improved to 81% from 80%.

Segment performance

• Residential and commercial properties rental revenue fell by 6.2%, with occupancy steady at 89%.

• Hotel and suites revenue rose by 12-12.5%, with occupancy up to 77% from 69%.

• Mall segment revenue was stable, down just 0.5% year-over-year, with occupancy at 91%.

• Operating profit margin: residential/commercial 84%, hotels/suites 67%, malls 67%.

• Segment profits: residential/commercial QR 63.2 million, hotels QR 94 million, malls QR 44.6 million.