Hello, everyone. This is Dana Al Sowaidi from QNB Financial Services.

I would like to welcome everyone to Ezdan Holding Group's second quarter 2026 financial results conference call. On this call from management, we have Tamer Fouad, Group Chief Financial Officer, and Taha Moursi, Financial Controller and IR Officer.

We will conduct this conference call with management reviewing the company's results, followed by a Q&A session. I will now turn the call over to Taha.

Please go ahead.

Hi. Good afternoon, everyone.

Thank you for joining us today for Ezdan Holding Group Q2 '26 conference call. Our investor presentation is available on our website at www.ezdanholding.qa under the Investor Relations section.

Before we begin, we would like to provide a disclaimer that some of the information that will be discussed here might contain projections or other forward-looking statements regarding future events or future financial performance of Ezdan Holding Group. Any forward-looking statements, including those that are not historical facts, speak only as of when it is made.

Ezdan undertakes no obligation to publicly update or publicly revise any forward-looking statements, whether because of new information, future events, or otherwise. Today's call will cover three main areas.

First, we will walk through our financial performance for Q2 '26 compared to Q2 '25. Second, we will compare financial position as of 30 June '26 with 31 December '25.

Third, we will cover cash flow statements for Q2 '26 compared to Q2 '25. First, for financial performance, in Q2 '26, Ezdan achieved net profit attributable to its owner of around 442 million, compared to 423 million.

The main drivers behind these changes were as follows: first, finance costs decreased by 119 million; second, rental income increased by 17 million; and other income increased by 17 million. On the other hand, gain on sale of investment properties and assets held for sale has been decreased by 111 million.

For key ratios during the period, operating gross margin remained stable at 83%, net profit margin slightly improved from 46% to 47%. For the components of income statements: first, for rental income, Ezdan recognized around 904 million, compared to 887 million, reflecting an increase of around 17 million or approximately 2%.

Those gross and rental revenue was supported by improved performance across key operating segments, mainly residential segment with 2%, and mall segment with around 16%. If we move forward to main statistics for residential segments, average occupancy improved to approximately 92% from 88.5%, and average revenue per unit remained broadly stable at around 4.4 thousand per unit, while average total number of units available for rent decreased from approximately 33,000 during Q2 '25 to 32,000 units during Q2 '26.

For hotel segments, average occupancy decreased to approximately 82%, compared to 83%, and the average daily rate at Ezdan Palace Hotel decreased from 427 to 422, while average daily rate in Ezdan Hotel West Bay decreased slightly from 173 to 170. For mall segment, average occupancy reached approximately 95% from 91%.

For operating expenses, there was no material changes. For operating profit, operating profit increased from 765 million to 782 million, with an increase of approximately 17 million or 2.1%.

By segment, residential segments operating profit grow from 661 million to 675 million, with the gross margin increased from 85% to 86%. Hotel segment operating profit decreased from 72 million to 68 million, with the gross margin declined slightly from 69% to 68%.

The mall segments operating profit improved from 32 million to 39 million, with the gross margin rising from 69% to 73%. General and admin expenses increased by approximately 4 million, from 43 million to 47 million, with an increase of around 10 10%.

The main driver was increase in commission fees and staff cost combined by around 5 million, while bank charges decreased by around 1.5 million. For gain on sale of investment properties and assets held for sale, it decreased from 116 million to 5 million, with a decrease of around 111 million, and this mainly because during '25 first half, there was a selling of Ezdan Compound 40, which resulted in a gain of around 115 million, while during the first half of '26, there was a selling of individual units resulted in a gain of 5 million.

For forex gain or losses, the group recorded a forex loss of approximately 4.1 million, compared to a gain in first half of '25 with 21 million, and this mainly because of changes in the British pound sterling exchange rate. For finance costs, there was a decrease by approximately 120 million, as finance costs decreased from 422 million to 303 million, representing a reduction of around 28%.

This was primarily driven by lower borrowing rates and improved in profit margins on financing facilities. Moving now to the financial position: total assets stood at approximately 45.9 billion, compared to 45.6 billion.

Cash and bank balances increased to 878 million from 511 million, and an improvement of approximately 367 million or 72%. Assets held for sale decreased by around 131 million as a result of selling residential units during the period.

Total liabilities decreased by around 206 million from 12.1 billion to around 11.9 billion. Trade and other payables decreased by approximately 14 million.

Islamic borrowings decreased by a net amount of 192 million during the period. This reflects finance costs of approximately 302 million and repayments of approximately 496 million.

Total equity increased from 33.6 billion to 34 billion, an increase of approximately 444 million. The group's share capital stands at 26.5 billion.

Retained earnings increased by 442 million, primarily reflecting the net profit generated during the period. For cash flow statement: net cash flows from operating activities were 711 million, compared to 700 million; and net cash flows from investing activities were 147 million, compared to 404 million; and net cash flows used in financing activities were 494 million, compared to 359 million.

Thank you for your attention. We are happy to take any questions you may have now.

Salam alaykum. This is Ejayan Al-ahbabi from Al Rayan Investment.

Thank you for the presentation and allowing me to ask my question. I heard you talk about the occupancy, but I was not able to get the exact percentage.

Could you please give me some guidance on the occupancy rates, blended and for the different segments if you can?

Okay. We can repeat again for the occupancy.

For residential segment, we have around 92%. For hotel segment, we are talking about 82%.

For mall segment, it was around 95%.

Awesome. Excellent.

In terms of the residential and commercial property units, what is the unit amount of apartments?

No, for residential segment, we are talking about here the units for that is being rented to the individuals and the companies.

Yeah. Do you know how many units are available for rent?

For residential segment, we are talking about around 32,000 units available for rent, residential. We are talking about 97% residential, and we are talking about only 500 or 600 units as commercial.

Okay. Okay.

Do you see yourself adding more in anytime soon to this unit amount?

For the time being, there is no additional units in the pipeline.

Okay. Thank you.

With regards to deal, such as the one that you've done last year around the same time of perhaps selling some assets, so, and can we kind of expect something similar this year or next year?

If you are talking about last year in the first half of '25, we sold Ezdan Compound 40 because there was a profitable opportunity at that time. The second half of '25, we started selling individual units, and we continue in first half of '26 to selling additional individual units also.

If you return back to our cash flow, you will find we generate around 140 million from the selling of individual units.

Are you expected to sell any units this year or?

We are in this project now. During the first half, we are selling.

Based on the market, we are continuing in this one. Also, if you notice in the balance sheet, we have assets held for sale with 100 101 million.

This the assets is available for the selling now.

Thank you. Thank you.

Final questions on finance costs. Going forward, do we expect the same finance costs for the full year '26?

As of now, yes, we expect finance costs of by the year-end to be, of course, less than the finance costs of 2025.

Okay. Thank you.

That's all my question. Thank you very much.

Thank you.

There are no more questions. We would like to thank the company's management for the results update and for taking the time to answer all queries, and we look forward to speaking to you all for the third quarter results.

Thank you, everyone.