Dar Al-Arkan 3rd Quarter Results (4864Q)

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RNS Number : 4864Q

Dar Al-Arkan International Sukuk II

19 October 2011

Dar Al-Arkan Real Estate Development Company announces its interim financial results for period ended September 30, 2011 (nine month).

1. The net income generated during the third quarter reached SAR 227.5 million, compared to SAR 289.6 million for the same period last year, a decrease of 21.4% and compared to SAR 297.8 million for the second quarter 2011, a decrease of 23.6%. 2. The gross profit generated during the third quarter amounted to SAR 320.6 million, compared to SAR 374.9 million for the same period last year, a decrease of 14.5%. 3. Operational profit generated during the third quarter amounted to SAR 289.9 million, compared to SAR 340.3 million for the same period last year, a decrease of 14.8% 4. The net income generated during the nine months period amounted to SAR 798.3 million, compared to SAR 1,125.3 million for the same period last year, a decrease of 29.1%. 5. Earnings per share for the first nine months were SAR 0.74 compared to SAR 1.04 for the same period last year. 6. The gross profit generated during the nine months period amounted to SAR 1025 million, compared to SAR 1,384.2 million for the same period last year, a decrease of 26%. 7. Operational profit generated during the nine months period amounted to SAR 935.2 million, compared to SAR 1,267.5 million for the same period last year, a decrease of 26.2%.

8. The decrease in net income during the third quarter versus the previous quarter is mainly due to; the lower sales, which is attributable to some seasonal factor as the summer period this year included the full month of Ramadan; the decrease in non operative income arise from the SWAP derivative; and the increase on Zakat provision. The decrease in net income during the three month and the nine month period compared to the same periods in previous year is an account of, lower land sales as the Company sought to enhance gross margins and lower residential sales due to lower available completed units.

The consolidated financial statements and the quarterly financial update presentation are available in the investor relations section on the Company's website http://www.alarkan.com

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