Riyadh – Business News Report|| Sinami Centers Company, a leading real estate investment manager in Saudi Arabia, announced a significant contraction in its bottom line for the third quarter of 2026. The company’s net profit attributable to shareholders fell by 19.1 percent on an annual basis, settling at SAR 404.9 million, which is approximately USD 108 million. This figure stands in contrast to the SAR 500.7 million (USD 133.5 million) recorded during the same period last year.
Revenue Expansion Amidst Operational Headwinds
Despite the drop in net income, the firm demonstrated robust top-line performance. Total revenues increased by 10 percent to reach SAR 606.2 million (USD 161.7 million), up from SAR 551.3 million (USD 147 million) in the third quarter of 2025. Additionally, this represents a 6.5 percent sequential growth compared to the second quarter of the current year, where revenues stood at SAR 569.4 million. The company attributed this growth to continued expansion of its portfolio and successful attraction of new retail brands.
Adjusted Metrics Show Stronger Performance
In a move to provide clarity on underlying operational efficiency, the company highlighted adjusted net profit figures. Adjusted net profit rose sharply by 32.8 percent year-on-year to SAR 417.9 million (USD 111.4 million), compared to SAR 314.7 million in the corresponding period last year. Management emphasized that this metric excludes certain non-recurring items and should not be confused with the reported statutory net profit, which reflects broader financial pressures including higher costs.
Cost Structures and Asset Valuations
The cost structure saw notable shifts during the quarter. Cost of revenues climbed to SAR 145.9 million (USD 38.9 million), up significantly from SAR 99.4 million (USD 26.5 million) a year ago. Conversely, impairment losses on receivables and related party balances dropped by 78 percent to SAR 17.8 million, down from SAR 81 million. Net financing costs decreased by 22.4 percent to SAR 138.6 million (USD 37 million), while fair value gains on investment properties increased by 19.6 percent to SAR 215.1 million (USD 57.4 million).
Visitor Traffic and Portfolio Expansion
Operational metrics remained positive, with visitor numbers rising to 39 million in the third quarter, a 20.7 percent increase from 32.3 million visitors in the same period last year. During the first nine months of 2026, total revenues grew 1.9 percent to SAR 1.758 billion (USD 468.8 million). However, net profit for the nine-month period declined 16.6 percent to SAR 993.1 million (USD 264.8 million). The company attracted 162 new brands in Q3, including 110 international labels. New developments include Westfield Jeddah, which commenced operations on July 30, 2026, with a pre-leasing rate of 97 percent, and Westfield Riyadh, where structural work reached 100 percent completion with a 95 percent pre-leasing rate.
This story was produced in the newsroom from the disclosed sources named above.
