Al Mazaya Holding Company

1. Company Overview & Earnings Context

Al Mazaya Holding Company is a Kuwait-based real estate investment and development company listed on both the Kuwait Boursa and Dubai Financial Market (DFM). The Group owns and manages investment properties while generating income from property rentals, real estate sales, and related investment activities across Kuwait, the UAE, Saudi Arabia, and other regional markets.

For H1 2026, the Group reported a net loss as lower rental income, higher legal provisions, and increased other expenses more than offset gains from investment property sales and the disposal of an associate. Despite the decline in profitability, Al Mazaya maintained a sizeable investment property portfolio and continued executing strategic asset disposals and balance sheet management initiatives.

2. Financial Performance Snapshot

• Total Revenue: KD 5.58 Million

• Gross Profit: KD 4.45 Million

• Operating Profit: KD 3.25 Million

• Finance Costs: KD 1.16 Million

• Loss Before National Labor Support Tax: KD 0.96 Million

• National Labor Support Tax: KD 32.4 Thousand

• Net Loss: KD 0.99 Million

• Loss Per Share (LPS): 1.96 fils

Compared with H1 2025:

• Revenue decreased 7.8% to KD 5.58 million.

• Gross profit declined 5.8% to KD 4.45 million.

• Operating profit decreased 6.7% to KD 3.25 million.

• The Group reported a net loss of KD 0.99 million, compared with a net profit of KD 1.06 million in H1 2025.

• Loss per share was 1.96 fils, versus earnings per share of 2.14 fils in H1 2025.

3. Operational Highlights & Key Metrics

• Total Assets: KD 123.50 Million

• Investment Properties: KD 106.31 Million

• Total Equity: KD 45.50 Million

• Total Liabilities: KD 78.00 Million

• Cash & Cash Equivalents: KD 4.00 Million

• Operating Cash Flow: KD 1.16 Million

• Investing Cash Flow: KD 3.24 Million

• Financing Cash Flow: KD (3.50 Million)

• Investment Property Sales Proceeds: KD 3.53 Million

• Bonus Shares Approved: 2% from Treasury Shares (subject to record date)

4. Key Performance Drivers

The Group's performance was impacted by lower rental income and management fee income, alongside significantly higher net other expenses, largely driven by provisions for legal claims and expected credit losses. Although Al Mazaya recorded gains from selling investment properties and the disposal of an associate, these were insufficient to offset the increase in provisions, finance costs, and operating expenses, resulting in a loss for the period.

5. Outlook & Forward Guidance

Management continues to optimize the Group's real estate portfolio through selective property disposals, disciplined capital management, and treasury share distributions. The Company also continues to pursue legal claims relating to its Dubai projects while focusing on preserving liquidity and strengthening its balance sheet across its regional operations.

6. Investor Takeaway

Al Mazaya's H1 2026 results reflect a challenging operating environment, with legal provisions and higher expenses weighing on earnings despite stable rental operations and continued asset monetization. The Company's sizeable investment property portfolio, positive operating cash flow, and ongoing portfolio optimization remain important areas for investors to monitor in the coming quarters.