“Buildings”: Stable performance aligned with our goals and continued achievement of sustainable value for our shareholders
Al Binaa Company held its first-half 2026 analysts’ conference, attended by Tariq Al-Adousani, Executive Vice President, and Abhishek Rastogi, Chief Financial Officer, with the dialogue moderated by Nora Zahiri, Acting Director of Investor Relations. Al Binaa announced its financial results for the first half of 2026, reporting a decline in both revenues and net profit, primarily due to the ongoing geopolitical situation. This was further impacted by costs associated with projects under construction scheduled to open within the next year, which have begun to reflect on Al Binaa’s financial results and are expected to continue until the actual commencement of operations for these projects.
The three anticipated projects include Aventura Mall and Hilton Kuwait Resort – Al Manqaf, expected to open by the end of this year, as well as The Avenues – Riyadh, scheduled to open in March 2027. The Group reported a net profit of KD 32.4 million during the first half of 2026, compared to KD 50.3 million during the same period last year. It is worth noting that the first quarter of 2025 results included a one-time exceptional gain from the sale of land in Kuwait, which significantly raised the comparison base. Excluding this non-recurring gain, net profit remained stable and largely aligned with targeted levels.
Group revenues for the first half of the year stood at KD 65.4 million, representing a relative decline of approximately 4.5% compared to the same period last year. This decrease was primarily driven by the operational performance of the hospitality sector, which was affected by geopolitical developments in the region and their impact on travel movements during that period.
On the operational front, the Group continued to deliver strong performance, with recurring earnings before interest, taxes, depreciation, and amortization (EBITDA) reaching KD 44.6 million, while maintaining a gross profit margin of 71.4%, reflecting cost management efficiency and the continued robustness of operational performance.
Al Binaa clarified that the Group’s currently managed assets consist of two commercial complexes with a total gross leasable area of 444,000 square meters, three hotels comprising 777 guest rooms, 669 residential units, and 4,513 square meters of total leasable office space. Next year, the Group will add 464,000 square meters of additional gross leasable area to its commercial complexes, along with 319 additional hotel rooms in the hospitality sector.
Over a period of three to four years, the Group will continue its expansion plans by adding 190,000 square meters of total gross leasable area in its commercial complexes, 1,578 hotel rooms, 232 residential units, and approximately 58,568 square meters of total leasable office space.
Al Binaa emphasized that despite increased financing allocated to support projects under development, the capital structure continues to be managed efficiently, in line with its growth strategy, while maintaining a strong financial position.
The Group’s operations maintained stable performance aligned with its objectives during the first half of the year. The Group’s priorities remain focused on completing projects under construction, maintaining financial discipline, and continuing to deliver sustainable value to its shareholders.
The Company also highlighted its significant commitment to achieving goals and excellence in Environmental, Social, and Governance (ESG) areas, setting new targets to accelerate progress in these fields through various initiatives in environmental, community, and governance domains.
Projects in the State of Kuwait
• The Avenues – Kuwait: Continued to deliver stable performance and a consistent footfall rate compared to last year, with an occupancy rate of 98%, reflecting continued strong operational performance.
• Hilton Garden Inn – Kuwait: Occupancy rates declined during the first half of the current year due to the ongoing geopolitical situation. Operational performance is expected to gradually improve as stability returns to the region.
• Waldorf Astoria – Kuwait: The five-star Waldorf Astoria – Kuwait, directly connected to The Avenues – Kuwait via the Prestige area, was also affected by the ongoing geopolitical situation. Hotel occupancy rates declined during the first half of the year, with operational performance expected to gradually improve as regional stability returns.
• Aventura Project (J3): Aventura Mall is located in Jabir Al-Ahmad City. The project’s opening has been rescheduled from August to late October of this year. This is one of Al Binaa’s most anticipated projects, with leasing activity showing strong demand, as leased space currently exceeds 70%.
Regarding Aventura Residences, the residential sector comprises two phases. Phase One includes residential units, more than 50% of which were leased at the beginning of this year. Phase Two includes townhouses alongside several apartment buildings.
• Sabah Market Project (S3): Work continues on the Sabah Market project, which features a traditional heritage market and a hotel, progressing despite current challenges imposed by the ongoing situation on construction activities and material supply. Although the project timeline experienced minor delays, the completion rate has reached 43%.
• Hilton Kuwait Resort – Al Manqaf: The project is currently undergoing renovation works, with a completion rate of 57%. The ongoing geopolitical situation has affected supply chain factors for materials required for the project, leading to a rescheduling of the resort’s opening to December of this year.
Projects in the Kingdom of Bahrain
• The Avenues – Bahrain: Maintained stable occupancy levels during the first half of this year despite challenges posed by the ongoing geopolitical situation. Occupancy rates reached 83% in Phase One and 77% in the newly opened Phase Two.
• Hilton Garden Inn – Bahrain: The hotel recorded, for the first time since its opening, an occupancy rate below 50%, with current operational performance at 41%. Performance is expected to gradually improve as geopolitical stability returns and travel movements normalize.
Projects in Saudi Arabia
• The Avenues – Riyadh: Construction works are nearing completion, with a building completion rate of 95%. The project is scheduled to open in March next year. Leasing activities are also progressing significantly, with leased space reaching approximately 80%. The project also includes five towers progressing well according to the approved schedule, with two of the five towers constructed up to the 35th floor. The project and towers are expected to be completed and opened in 2028, approximately one year after the opening of The Avenues – Riyadh.
• The Avenues – Al Khobar: Leasing activities have commenced, coinciding with ongoing construction progress, which has reached a completion rate of 53%. The project includes a shopping mall, a hotel, and a dedicated office tower.
