Ezdan Holding Q2 2025 presentation: Net profit surges 140% amid steady rental growth

Introduction & Market Context

Ezdan Holding (ERES), one of Qatar’s prominent real estate developers and operators, has reported a remarkable increase in profitability for the second quarter of 2025, according to the company’s investor presentation. While the company’s stock has recently experienced a minor decline of 0.91%, trading at QR 1.215, it remains near its 52-week high of QR 1.249, reflecting investor confidence in the company’s performance.

Quarterly Performance Highlights

Ezdan Holding reported an exceptional 139.7% increase in net profit for Q2 2025, reaching QR 423 million compared to QR 176.5 million in the same period last year. This dramatic profit growth came alongside a more modest 2.5% increase in rental income, which totaled QR 887.5 million for the quarter.

As shown in the following financial highlights, the company maintained strong operational metrics across its portfolio:

The company’s earnings per share (EPS) more than doubled to QR 0.016, representing a 137.3% increase from Q2 2024. Operating profit also showed improvement, rising 2.7% year-over-year to QR 765.4 million.

Detailed Financial Analysis

Ezdan’s consolidated statement of profit or loss reveals the substantial improvement in bottom-line performance despite relatively modest top-line growth. The company’s ability to maintain strong operating margins while controlling expenses contributed significantly to the profit surge.

The company’s rental revenue growth was primarily driven by its residential and commercial properties segment, which saw a 3.14% increase year-over-year. The hotel and suites segment showed minimal growth of 0.3%, while the mall segment experienced a 4.05% decline in revenue compared to the same period last year.

The following breakdown illustrates the contribution of each segment to Ezdan’s rental revenue:

Segment Performance

Ezdan demonstrated impressive operational efficiency across all business segments. The residential and commercial properties segment, which represents the largest portion of the company’s portfolio, maintained an exceptional operating margin of 85% in Q2 2025, up from 84% in the previous year.

Both the hotel and suites segment and the mall segment achieved operating margins of 69%, though the mall segment saw a decline from 73% in the previous year. Overall, Ezdan’s total operating margin improved to 83% from 82% year-over-year.

The following chart details the operating profit by segment:

The company also managed to reduce its operating expenses by 2.48% compared to the same period last year, with notable decreases in both the residential and commercial properties segment (-2.67%) and the hotel and suites segment (-5.16%). Only the mall segment saw an increase in operating expenses, rising 5.86% year-over-year.

Cash Flow and Balance Sheet

Ezdan’s cash flow position showed dramatic improvement in Q2 2025. The company reported a QR 744.8 million increase in cash and cash equivalents, compared to a decrease of QR 128.5 million in the same period last year—representing a remarkable 680% positive swing.

The following cash flow statement highlights this significant improvement:

This substantial cash flow improvement was driven by a 7% increase in operating cash flows, combined with a significant positive swing in investing activities. The company also reduced its cash outflow from financing activities by 52% compared to Q2 2024.

Ezdan’s balance sheet remained stable, with total assets of QR 46.8 billion as of June 30, 2025, representing a 1% increase from December 31, 2024. Total equity also increased by 1% to QR 33.8 billion, while total liabilities remained essentially unchanged at QR 13 billion.

The company’s financial position continues to be dominated by its substantial investment properties portfolio, which accounts for the majority of its assets. With a strong equity position and manageable debt levels, Ezdan appears well-positioned to continue its operations and potentially pursue growth opportunities in the Qatari real estate market.

Full presentation:

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