Adeer Real Estate, a leading real estate services company in the Kingdom of Saudi Arabia, announced exceptional financial results for the fiscal year ending in 2023, recording a significant jump in its net profits of more than 62% to reach SAR 103.2 million, compared to profits of SAR 63.6 million in 2022. This strong growth reflects the success of the company's expansion strategy and its ability to capitalize on the opportunities available in the thriving Saudi real estate market.
Growth drivers and company performance
According to the official statement published by the company on the Saudi Stock Exchange (Tadawul), this significant increase in profits is primarily attributed to revenue growth coupled with improved gross profit margins. During the year, the company successfully concluded and executed several high-quality real estate transactions and new projects, which directly contributed to boosting its revenues and achieving this substantial net profit growth of 62.1%.
General context of the Saudi real estate market
Adeer's outstanding performance comes amidst a comprehensive boom in the Kingdom's real estate sector, a key pillar of the economic transformation program under Saudi Vision 2030. The government supports this sector through the launch of mega-projects such as NEOM, the Red Sea Project, and Qiddiya, in addition to housing programs aimed at increasing homeownership rates among citizens. This positive investment climate creates a fertile environment for the growth of specialized companies like Adeer, which plays a vital role in marketing and managing major real estate assets.
Distribution of cash dividends to shareholders
In recognition of these positive results, the Board of Directors of Adeer Real Estate Company, at its recent meeting, approved the distribution of generous cash dividends to shareholders for the second half of 2023. The company clarified that the total amount to be distributed is SAR 50 million, to be distributed among 5 million eligible shares. This translates to a dividend of SAR 10 per share, representing a 100% distribution of the share's nominal value, reflecting the company's strong financial position and its commitment to achieving optimal returns for its shareholders.
The company has set February 4 as the date for entitlement to profits, with the distribution process to begin on February 15 of the same month.
Importance and expected impact
These strong results for Adeer are a positive indicator of the health and strength of the Saudi real estate sector. Domestically, these figures bolster investor confidence in the Saudi Stock Exchange (Tadawul) and highlight the viability of investing in leading real estate companies. Regionally, the success of companies like Adeer attracts further Gulf investments to the Kingdom, reinforcing its position as a premier real estate investment destination in the region.
