Al-Mabani: Financial flexibility and developmental financing capacity

Al-Mabani held its third-quarter 2026 analysts and investors conference, attended by Mr. Tariq Al-Adesani, Executive Vice President, and Mr. Abhishek Rastogi, Chief Financial Officer, with the dialogue moderated by Nora Zahiri, Acting Investor Relations Manager. During the conference, the company presented its financial and operational results for the first nine months ended September 30, 2026, along with key updates on its operational and development projects in Kuwait, the Kingdom of Bahrain, and the Kingdom of Saudi Arabia, as well as its initiatives in sustainability, corporate social responsibility, and governance.

Al-Mabani announced a net profit of 46.4 million Kuwaiti dinars for the first nine months of 2026, compared to approximately 67.5 million dinars during the same period last year. It is worth noting that the 2025 results included non-recurring exceptional profits of 21.6 million dinars, resulting from the sale of freehold land in Kuwait. Excluding the impact of these profits, net profit remained relatively stable compared to the corresponding period last year.

Financial performance: Al-Mabani’s total revenues for the first nine months of 2026 reached approximately 99.6 million dinars, a decrease of 2.7% compared to the same period last year. This decline was attributed to several factors, most notably the continued impact of geopolitical developments on the hospitality sector, the emergence of pre-operating expenses related to upcoming project openings, and an exceptional contribution of 2.5 million dinars made by the Group to the Kuwait Emergency Response Fund.

Conversely, the Group’s business activities maintained stable performance, with investment real estate revenues recording a slight increase compared to the same period last year, reflecting the resilience of Al-Mabani’s core operating assets and their ability to navigate economic and regional changes.

For the third quarter of 2026, the Group’s revenues reached 34.2 million dinars, slightly surpassing the levels of the corresponding quarter in 2025, supported by a 2.3% increase in investment real estate revenues. Additionally, occupancy rates in the hospitality sector at both of the Group’s hotels in Kuwait returned to previous levels during July and August.

Net profit for the third quarter amounted to 14 million dinars, after accounting for the Group’s contribution of 2.5 million dinars to the Kuwait Emergency Response Fund, which was fully recorded within the third-quarter financial results. Earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled 64.6 million dinars for the first nine months of 2026, a decline of approximately 6% compared to the same period last year, due to the performance of the hospitality sector and the exceptional contribution to the Kuwait Emergency Response Fund. Meanwhile, the Group maintained a gross profit margin of 71%, reflecting continued efficiency in operational cost management and expenditure discipline.

According to the Group’s balance sheet, total assets reached 2.3 billion dinars at the end of September, representing a 25% growth compared to the same period last year, driven by the Group’s ongoing development of projects and expansion of its real estate assets in the Kingdom of Saudi Arabia and the State of Kuwait. Available liquidity stood at 81.6 million dinars, with Al-Mabani continuing to benefit from financial flexibility and funding capacity that support the completion of its development projects and the fulfillment of future obligations.

The Buildings Management Company affirmed that the company continues to implement its strategy aimed at diversifying its real estate asset portfolio and expanding into the retail, residential, office, and hospitality sectors through the development of integrated, mixed-use projects that meet the needs of the markets in which it operates. It noted that the stable performance of the Group’s shopping malls reflects the strength of Buildings’ business model, coinciding with the company’s preparation for a new phase of operational expansion, marked by the opening of three major projects: starting with Avenues Mall in November this year, followed by the Hilton Kuwait Resort – Al Manqaf at the beginning of next year, and culminating with Avenues Riyadh in March 2027.

Avenues Kuwait continues to consolidate its position as one of Buildings’ key operating assets and its flagship retail project, with occupancy rates stabilizing between 97% and 98%. Further momentum and growth are expected next year.

Hilton Garden Inn Kuwait and Waldorf Astoria Kuwait, which are connected to Avenues Kuwait, experienced a decline in occupancy rates due to current conditions and regional developments.

Avenues (J3) – Kuwait: The Avenues project, located in Jabir Al-Ahmad City, is approaching a major milestone in Buildings’ development of mixed-use projects, with construction works at Avenues Mall reaching 100% completion and preparations underway for its opening in November this year.

Hilton Kuwait Resort – Al Manqaf: The project experienced some delays due to current logistical challenges, particularly concerning supply chains and the delivery of construction materials and supplies, including imported goods and furniture. Nevertheless, Buildings continues to make progress in operational preparations according to the established plans, with recruitment procedures advancing and the resort’s General Manager and management team having already assumed their duties.

Sabah Market: Difficulties related to the supply of certain essential construction materials, including steel, along with delays in shipping and supply chains, have impacted the project’s timeline. However, the company anticipates an improvement in the pace of work execution in the coming phase, expecting delays to subside and their impact on the project’s progress to be minimized.

Avenues Bahrain: Avenues Bahrain maintained stable operational performance during the first half of 2026, despite challenges posed by current geopolitical conditions, with occupancy rates reaching 94% in the first phase of the project and 77% in the second phase. Buildings expects continued improvement in the operational performance of the second phase in the near future, particularly as current conditions stabilize, their impacts diminish, and visitor traffic recovers.

Hilton Garden Inn Bahrain: Regarding the Hilton Garden Inn Bahrain, Buildings anticipates a gradual improvement in hotel occupancy rates as regional conditions stabilize and restrictions on travel, movement, and security measures are eased. Additionally, the decline in passenger traffic from the Kingdom of Saudi Arabia to the Kingdom of Bahrain has contributed to lower hotel occupancy rates, affecting the hospitality sector as a whole.

Avenues Riyadh: Construction works at the Avenues Riyadh project are nearing completion, with preparations underway for the project’s opening on March 27, 2027.

Leasing operations continue in accordance with the established plans, with leased and contracted spaces reaching approximately 70%, reflecting strong interest from brands and investors. Al-Akhbar News – The Al-Akhbar News project continues to progress according to the planned schedule, with completion reaching around 60%, as development works on the commercial complex and its associated components persist.