The Saudi Real Estate Company's losses increased by 539.1% to reach 29.4 million riyals in the first quarter of 2022, compared to losses of 4.6 million riyals in the same quarter of 2021, and compared to profits It reached 92.6 million riyals in the fourth quarter of 2021.
According to Arabiya Net, the company said in a statement, that the increase in losses is due to the high financing burden of 17.4 million riyals due to the suspension of its capitalization on the Valleys project as a result of the cessation of project activities. , given that the project land is located within an area under study with the aim of developing it by government agencies.
This is also due to the increase in general and administrative expenses compared to the same quarter of the previous year, by an amount of 5.8 million riyals, as a result of the expansion in the activity of subsidiaries, and the increase in marketing and selling expenses, by a total amount of 6.6 million. One million riyals due to an increase in the provision for expected losses and advertising campaign expenses for the Al-Aqaria Park project.
The results were also affected by a decrease in other net income, in addition to an increase in the Zakat provision by 7.3 million riyals.
The company recorded accumulated losses of about 274.9 million riyals at the end of the first quarter of 2022, equivalent to 11.5% of the capital of about 2.4 billion riyals.
