RIYADH, Oct 10 (Reuters) - Dar al-Arkan Real Estate Development Co, Saudi Arabia's largest developer by market value, on Saturday posted a 14.4 percent drop in third-quarter net profit due to a property sector slowdown.
The company made a net profit of 616.2 million riyals ($164.3 million) in the three months to Sept 30, down from 719.5 million riyals a year earlier, it said in a statement on the Saudi bourse website.
'The decline in third-quarter net profit ... is due to the higher profit margin (made) during the third quarter of last year, itself due to the growth recorded by the real estate market throughout much of 2008,' it said.
Revenues stood at 1.52 billion riyals in the three-month period, up from 1.48 billion riyals a year earlier, it added.
'The (revenues') growth of 2.8 percent reflects the stability of the property market,' it said.
Earnings per share of 1.54 riyals by the end of the third quarter compared with 1.72 riyals a year earlier, the company said.
There are no official figures on sales of housing units in Saudi Arabia.
Saudi property developers, comprising mainly private firms, are not as well-organized as some of their peers in the region, due mainly to mortgages being unaffordable for ordinary Saudis as a lack of legislation means banks are reluctant to issue such financing.
Saudi real estate is still the subject of great interest from regional and international investors who are drawn to the kingdom's rapidly growing population and the cash-laden government's efforts to reduce a rising housing deficit.
About 30 percent of Saudis own a home and U.S. consultancy Clayton Holdings Inc -- which is helping set up mortgage lenders in Saudi Arabia -- estimated in 2009 that the kingdom has a deficit of 2 million residential units rising by 200,000 annually.
(Reporting by Souhail Karam; Editing by Andy Bruce) ($1=3.750 riyals) Keywords: DARALRKAN EARNINGS (souhail.karam@thomsonreuters.com, +966 1 463 2603; Reuters Messaging: souhail.karam.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company made a net profit of 616.2 million riyals ($164.3 million) in the three months to Sept 30, down from 719.5 million riyals a year earlier, it said in a statement on the Saudi bourse website.
'The decline in third-quarter net profit ... is due to the higher profit margin (made) during the third quarter of last year, itself due to the growth recorded by the real estate market throughout much of 2008,' it said.
Revenues stood at 1.52 billion riyals in the three-month period, up from 1.48 billion riyals a year earlier, it added.
'The (revenues') growth of 2.8 percent reflects the stability of the property market,' it said.
Earnings per share of 1.54 riyals by the end of the third quarter compared with 1.72 riyals a year earlier, the company said.
There are no official figures on sales of housing units in Saudi Arabia.
Saudi property developers, comprising mainly private firms, are not as well-organized as some of their peers in the region, due mainly to mortgages being unaffordable for ordinary Saudis as a lack of legislation means banks are reluctant to issue such financing.
Saudi real estate is still the subject of great interest from regional and international investors who are drawn to the kingdom's rapidly growing population and the cash-laden government's efforts to reduce a rising housing deficit.
About 30 percent of Saudis own a home and U.S. consultancy Clayton Holdings Inc -- which is helping set up mortgage lenders in Saudi Arabia -- estimated in 2009 that the kingdom has a deficit of 2 million residential units rising by 200,000 annually.
(Reporting by Souhail Karam; Editing by Andy Bruce) ($1=3.750 riyals) Keywords: DARALRKAN EARNINGS (souhail.karam@thomsonreuters.com, +966 1 463 2603; Reuters Messaging: souhail.karam.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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