- Increase in operational revenue driven by income from city operations, and higher revenue from student enrollment in one of the Group’s subsidiaries operating in education sector

This increase was partially offset by the following:

- Decrease in hospitality and leisure revenue driven by lower occupancy.

- Slight decrease in sales of residential land and units.

- Increase in revenue for the reasons provided above

- Decrease in operational expenses by SAR 18m, primarily driven by lower professional charges as the same quarter of the last year included higher professional fees related to debt restructuring.

- Decrease in financial charges by SAR 72 million mainly driven by restructuring of long-term commercial debt at lower interest rates and conversion of shareholder loan into equity during 2025.

- Increase in other operating income by SAR 173m, mainly driven by gain on sale of Investment Property.

- Decrease in the share of loss from one of Group’s equity-accounted investee compared to same period of the last year, which included a one-off adjustment of SAR 49 million for the estimated loss relating to the project damaged as a result of fire incident during June 2025.

The decrease in net loss is despite the following:

- The same quarter of the last year included one-off gain of SAR 243 million from the extinguishment of debt, arising from the successful completion of the bank debt restructuring at lower interest rates.

- Increase in provision for Expected Credit Losses (ECL) by SAR 15m due to increase in unbilled receivables.

- Lower sale of residential unit and land during the current quarter compared to the previous quarter.

- Decrease in operational revenue from city operation and the education segment

- Decrease in operational expenses by SAR 11m primarily driven by lower spend on marketing activities

- Increase in other operating income by SAR 178m due to gain on sale of Investment Property

- Decrease in loss in share of associate by SAR 5m.

The decrease in net loss was partially offset by the following:

- Decrease in revenue as mentioned above

- Increase in provision for Expected Credit Losses (ECL) by SAR 5m due to increase in unbilled receivables.

- Revenue from certain property development projects under which revenue was being recognized on percentage-of-completion based, reached full completion and were delivered during 2025, therefore did not generate comparable revenue in the current period.

This decrease was partially offset by the following:

- 27% increase in operational revenue driven by income from city operations, and higher revenue from student enrollment in one of the subsidiaries operating in education sector.

- Decrease in financial charges by SAR 153m due to the restructuring of long-term commercial debt at lower interest rates and conversion of shareholder loan into equity during 2025

- Decrease in the share of loss from one of Group’s equity-accounted investee compared to same period of the last year, which included a one-off adjustment of SAR 49 million for the estimated loss relating to the project damaged as a result of fire incident during June 2025.

- Increase in other operating income by SAR 158m due to gain on sale of Investment Property

The above is partially offset by following:

- Decrease in the revenue for the reason provided above.

- Increase in operational expense by SAR 7m primarily driven by increased marketing spend to support company real estate strategy and higher employee related cost.

- The same period of the last year included one-off gain of SAR 243 million from the extinguishment of debt, arising from the successful completion of the bank debt restructuring at lower interest rates.

- The current period includes a charge of SAR 44m relating to the provision for expected credit losses compared to the same period of the last year which included a reversal of such provision.

The consolidated financial statements for the year ended 31 December 2025 and the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2025 were respectively audited and reviewed by another auditor who expressed an unmodified audit opinion and review conclusion on 8 April 2026 (corresponding to 20 Shawal 1447H) and 18 August 2025 (corresponding to 24 Safar 1447H), respectively.

During quarter ended 30 June 2026, management completed its assessment of the damage and obtained sufficient information to reliably estimate the resulting loss as a result of fire incident. Accordingly, management has restated the comparative income statement for the quarter and six-month period ended 30 June 2025 to reflect the impact of estimated loss.

The project was fully insured, and the related insurance claim is currently at an advanced stage.