ريتال.mp4
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00:00 Let me start with the order of ideas so that I can give you and the audience an idea of the 9-month and 3-month period
00:07 as a real estate development economy in the Kingdom, because we only work in the Kingdom of Saudi Arabia, and in particular, in Rida.
00:16 First, it is important to remember that in the third quarter of 2022, land sales were not exceptional, but they were not the main core business of the company.
00:27 Its value was approximately 225 million Riyals, and its profits were 57 million Riyals.
00:33 If you really want to know what is the impact of the benefits and the pressure on the demand for real estate units,
00:40 you must look at the core business and the results of the core business.
00:45 And if you look at the sales of these lands, you will find that we have a growth in the will of development by more than 50% in the third quarter, and more than 45% at the 9-month level.
00:59 The same thing is reflected in the profit margin.
01:01 If you look at the sales of these lands, there is a 2% and 16% growth at the 9-month level, and also a growth in the will of development despite the decrease in the sale of residential units.
01:19 In general, 80% of residential units are sold in the form of real estate, the mortgage.
01:25 From 9 months to 9 months, there was a decrease of 37-38% or 40% in the number of real estate mortgages that were made in the Kingdom.
01:35 For us, especially in Rital, we had a growth of 670 residential units sold in the first 9 months of 2022 to 1,050 units sold in the first 9 months of 2023.
01:49 This is a growth of more than 40%, thank God.
01:52 The continuation of the increase in profits undoubtedly causes great pressure.
01:57 Now I will move to the wisdom of the company's management, which is to make strategic adjustments in the portfolio in terms of size or geographical distribution.
02:09 We talked about this for three months.
02:12 We now have more than 55% of our projects in the central region, in Riyadh.
02:16 We started with three projects in the western region, and we have excellent projects in the eastern region, in Dammam and Khorbar.
02:24 Mr. Ammar, previously you pointed out a model of the company's work that depends on three main elements for the basic wills and priorities.
02:35 Is the company still having the same model or is there a change? What are the details of this model that the company is still working on?
02:48 The model is the same, there is no change.
02:52 We are developing on our own land, or we are developing in partnership with the national housing company, or we are developing with Russian.
02:59 The proportion is changing. We now have a larger proportion of projects with the national housing company.
03:06 The national housing company, which was recently, in less than a month, secured for the beneficiaries and buyers of projects developed on the land of the national housing company,
03:17 a modest profit on real estate financing, 2.59%.
03:22 This is a number that you do not see now, in light of the circumstances, anywhere in the world.
03:26 Let me ask you about the future of Retail.
03:31 You told us that there is work in Saudi Arabia at the moment.
03:36 Do we have a plan, a project, a vision to go abroad or to expand the investment?
03:44 Kareem, the levels are very high in the Kingdom.
03:49 The Kingdom has young people and there is excellent organic growth in the population, compared to the region and at a global level.
04:00 The demand is still high.
04:02 The pressure on demand is the increase in profits.
04:05 Our reading, and what we read from the economy, is that there is a gradual decrease after the second half of the year 2024.
04:15 This will immediately have a positive effect on the increase in demand.
04:20 As for Retail, at the moment, we see that there is excellent demand in the Kingdom of Saudi Arabia.
04:27 So, talking about geographical expansion outside the Kingdom, I think it is ahead of the current stage.
04:34 Mr. Ammar, at the level of the four future projects, you still have several projects.
04:41 Retail is a marketer and developer for a number of real estate banks.
04:47 It has a share in these banks.
04:49 Tell us about the will of these banks and the projects you asked about.
04:57 We met three months ago and the CEO announced that we have projects in the pipeline.
05:05 By definition, we say that the pipeline is the projects that we are working on to sign contracts.
05:10 The backlog, after we sign the contract and officially announce it, will be in the Retail backlog.
05:16 Today, the backlog includes projects that secure approximately 6,500 residential units,
05:22 with a will of 7,500 to 7,700 million Riyals.
05:27 The current projects that we are working on, we prove our will by the percentage of achievements.
05:32 The current projects that have started to be sold secure a will of approximately 4.5 billion Riyals.
05:39 This covers the fourth quarter of 2023 and 2024 in total.
05:43 Hopefully, the first quarter and the second quarter of 2025.
05:46 Three months ago, we announced that we would add about 50% more to the backlog.
05:54 Approximately 5 billion.
05:57 We signed contracts and officially announced the first project, which is the Red Scare in the eastern region,
06:02 with approximately 1 billion Riyals.
06:04 The final part of what we talked about previously will be announced in the coming period.
06:10 The issue is that there will be an awardation, and then it takes time to sign the contracts,
06:17 agreements and announce them officially.
06:20 Let's go to what the investor always likes, the idea of cash distributions.
06:26 You have cash distributions, free shares, you made free shares and increased drawing in the past period.
06:33 And also cash distributions.
06:35 The future is related to cash distributions in the coming period.
06:40 Do you have a plan to change the policy related to distributions?
06:45 What is its increase and decrease?
06:48 We committed, thank you, Kareem, an excellent question.
06:51 First, within nine months, there was a free cash flow to equity of approximately 317 million Riyals.
06:57 We distributed cash profits from contributors at the beginning of the year to now 200 million Riyals.
07:02 Almost 40% of the capital was distributed cash during the year.
07:06 Real estate business development, one of the most important indicators of success is cash flow.
07:13 From before the IPO to today, we are committed to distributing about 80%.
07:18 Last year, we distributed 81.5% of the profit.
07:22 Now, this is something that always follows a study, update and discussion with the board of directors.
07:27 But we do not see a problem in continuing to distribute profits because the cash flows are excellent, thank God.
07:32 We published the financial column today, you can see a big decrease in the capital of the worker.
07:38 Revenues in accounts receivables of more than 95 million Riyals.
07:42 Nine months were excellent, thank God, despite all the pressure, the main source of interest payments.