Dar Al-Arkan ends 2011 with strong cash position. (0090W)

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RNS Number : 0090W

Dar Al-Arkan International Sukuk II

23 January 2012

Dar Al-Arkan ends 2011 with strong cash position.

Dar Al-Arkan Real Estate Development Company released its annual financial results for the year ended 31 December 2011 as follows:

1. Revenue for the fourth quarter was SAR 810.9 million, compared to SAR 972.3 million for the corresponding period in 2010, a reduction of 16.6 %, and compared to SAR 755.1 million for the third quarter of 2011, an increase of 7.4%.

2. Net income for the fourth quarter was SAR 289.6 million, compared to SAR 330.4 million for the corresponding period in 2010, a reduction of 12.3% and compared to SAR 227.5 million for the third quarter of 2011 an increase of 27.3%.

3. Revenue during the full year was SAR 3,312.5 million, compared to SAR 4,142 million in the last year, a reduction of 20%.

4. Net income during the full year was SAR 1,087.9 million, compared to SAR 1,455.7 million in the last year, a reduction of 25.3%.

The fourth quarter saw an increase in sales compared to previous quarter on increased demand for properties. However, sales were lower than previous year due to (a) the Company's strategy of holding onto land parcels to achieve better margins, and (b) having much lesser quantity of finished residential units available for sale. The 27.3% increase in net income versus the previous quarter was the result of higher land sales together with an increase in valuation of SWAP derivative.

Mr. Anand Raheja, Dar Al-Arkan's CFO said, "We are pleased with the strong cash generation during the year. The Company closed the year with SAR 2.5 billion in cash, up from SAR1.2 billion in the previous year - this build-up is in accordance with our strategy of building cash reserves from internal resources to meet the upcoming debt obligations including the US$ 1 billion Sukuk maturing in July 2012". Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/0090W_-2012-1-23.pdf

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