Makkah Construction and Development (4100) investor relations material

Executive summary

• Q1 2026 revenue rose 7% year-over-year to SAR 251.4 million, with net income up 8% to SAR 162.2 million, driven by strong mall and hotel performance, higher lease rates, and operational efficiency.

• Major Ajyad land acquisition in Makkah completed for SAR 980 million to support long-term portfolio expansion and mixed-use development.

• Retail segment led growth with mall revenues up 20% year-over-year to SAR 79 million and gross profit up 26% to SAR 65 million.

• Hospitality segment maintained strong results with RevPAR up 5% to SAR 1,157, ADR up 10.4%, and occupancy at 88%.

• Company recognized among top regional growth leaders, reflecting strong financial stability.

Financial highlights

• Gross profit increased 10% year-over-year to SAR 187 million; EBITDA up 7% to SAR 174 million.

• Earnings per share rose 8% to SAR 0.81; operating cash flow up 29% to SAR 127 million.

• Free cash flow was negative SAR 852 million, reflecting the Ajyad land acquisition.

• Total assets increased to SAR 5.58 billion, and shareholders’ equity rose to SAR 4.09 billion.

• CAPEX surged to SAR 979 million, primarily due to Ajyad land acquisition.

Outlook and guidance

• Renovation of Hotel & Towers planned, with phased room closures through 2028 and estimated cost of SAR 400 million.

• Ajyad land project design phase underway, with completion targeted by end of 2026 and operations expected to begin in 2030.

• 2026 Hajj segment expects capacity of 60,000–70,000 pilgrims and gross margin of 5–6%.

• MCDC Mall guidance: available and leasable area ~17,700 m², average lease rate ~17,700 SAR/m².

• Revenue is expected to be seasonal, with higher performance during Hajj, Umrah, and summer vacation periods.