Aram Group

1. Company Overview & Earnings Context

ARAM Group Company P.J.S.C. is an Abu Dhabi Securities Exchange (ADX)-listed investment company based in Sharjah. Its activities include investments in agricultural and industrial projects, land and real estate, commercial projects, investment management, and real estate leasing and management services.

During H1 2026, ARAM continued advancing its diversification strategy while maintaining resilient rental operations. The company expanded into technology and healthcare-related investments through Quantum AI Connect Cloud Services and Prepaire Labs Holding, although higher financing and administrative costs weighed on near-term profitability.

2. Financial Performance Snapshot

• Rental Income: AED 6.20 Million (+15.4% YoY)

• Profit Before Tax: AED 0.91 Million (-56.6% YoY)

• Net Profit: AED 0.85 Million (-57.1% YoY)

• Earnings Per Share (EPS): AED 0.011 (-56.0% YoY)

• Finance Costs: AED 1.48 Million (+95.1% YoY)

• General & Administrative Expenses: AED 3.84 Million (+49.4% YoY)

Compared with H1 2025:

• Rental income increased from AED 5.38 million to AED 6.20 million.

• Profit before tax declined from AED 2.10 million to AED 0.91 million.

• Net profit declined from AED 1.98 million to AED 0.85 million.

• EPS declined from AED 0.025 to AED 0.011.

• Finance costs nearly doubled from AED 0.76 million to AED 1.48 million.

• General and administrative expenses increased from AED 2.57 million to AED 3.84 million.

3. Operational Highlights & Key Metrics

• Total Assets: AED 222.20 Million (+18.7% vs. Dec. 2025)

• Total Equity: AED 155.05 Million

• Total Liabilities: AED 67.14 Million

• Investment Properties: AED 163.46 Million

• Cash & Cash Equivalents: AED 6.31 Million

• Operating Cash Flow: AED 2.28 Million (-8.6% YoY)

• Occupancy Rate: 96.54%, up from 95.68%

• Book Value Per Share: AED 1.965 (+6.1% YoY)

4. Key Performance Drivers

ARAM's underlying rental operations remained resilient, with rental income growing 15.4% YoY, supported by sustained tenant demand and portfolio repositioning. Occupancy also improved to 96.54%, while actual rental income exceeded the company's budget by 3.4%.

However, stronger rental income did not translate into higher earnings. Finance costs increased 95.1% to AED 1.48 million following additional bank borrowings, while general and administrative expenses increased 49.4% to AED 3.84 million, largely due to higher licensing and professional fees associated with ARAM's investment and diversification activities.

5. Outlook & Forward Guidance

ARAM continues to pursue its diversification strategy beyond its traditional real estate activities. During H1 2026, the company invested AED 11.02 million for a 20% interest in Quantum AI Connect Cloud Services and advanced AED 22.0 million to Prepaire Labs Holding. The Prepaire loan was subsequently converted into equity following the reporting period.

Management expects near-term profitability may remain pressured by financing costs associated with these investments. However, it views stable rental operations, a growing asset base and its diversification strategy as supporting longer-term value creation.

6. Investor Takeaway

ARAM Group's H1 2026 results present a mixed picture. Core rental operations strengthened, with rental income rising 15.4%, occupancy reaching 96.54% and book value per share increasing 6.1%. The company's asset base also expanded 18.7% to AED 222.20 million as it deployed capital into new strategic investments.

However, this expansion came with substantially higher leverage and financing costs. Total bank borrowings increased to AED 58.42 million from AED 20.26 million at year-end 2025, contributing to the sharp decline in H1 profitability. The key factor to watch is whether ARAM's investments in Quantum AI and Prepaire Labs can generate sufficient future returns to offset the higher funding costs associated with its diversification strategy.