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

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

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

Please go ahead.

Good afternoon, everyone. Thank you for joining us today for Ezdan Holding Group's Q1 '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 look through our financial performance for Q1 '26 compared to Q1 '25.

Second, we will compare the financial position of 31 March '26 to 31 December '25. Third, we will cover a brief of cash flow statement for Q1 '26 compared to Q1 '25.

First, we will talk about financial performance. In Q1 '26, Ezdan achieved a net profit attributable to its owners of 225 compared to 153.

The main drivers behind these changes were as follows. First, finance costs decreased by around 65 million.

Second, rental income increased by around 14 million. Third, other income increased by 8 million.

Turning to key ratios of the operating gross margin remained stable at 83%. The net profit margin improved from 33% to 47%, reflecting mainly the reduction in finance costs.

On rental income, Ezdan recognized around 457 million compared to 444 million, reflecting an increase of around 14 million, or approximately 3.1%. Growth in rental revenue was supported by improved performance across key operating segments, including residential segment with 2%, mall segment with around 29%, and hotel segment with around 2%.

The main statistics for residential segments were: average occupancy improved to approximately 91.7% from 88%; average revenue per unit remained broadly stable at around 4.4 thousand; the total number of units available for rent decreased slightly from approximately 33.3 thousand during Q1 '25 to 32.1 thousand units during Q1 '26. The main statistics for hotel segment were: average occupancy improved to approximately 87% compared to 84%; the average daily rate at Ezdan Palace Hotel increased to 436 from 411; and the average daily rate at Ezdan Hotel West Bay remained stable at 176 compared to 177.

For mall segment, statistics was mainly average occupancy reached approximately 91... 95% from 91% in Q1 '25.

For operating expenses, operating expenses increased by around 2 million, from 78 million to 80 million, representing an increase of around 2.3%. On a component basis, the main driver was increase of staff costs and sewage expenses of approximately 3.5 million, along with increase in maintenance expenses of around 1 million.

This was partially offset by a reduction in utility charges of approximately 2.5 million. On a segment basis, the increase was mainly in hotel segment.

Operating profit from main operations increased from 386 million to 397 million, an increase of approximately 10 million, or 2.7%. Breaking this down by segments, the residential segment operating profit grew from 333 to 338 million, with the gross margin holding stable at 86% in both periods.

The hotel segment recorded a stable operating profit of around 59 million for both periods. The gross margin declined slightly from 71% to 70%.

The mall segment's operating profit improved from 15 million to 20 million, with the gross margin rising from 67... 69% to 75%.

General and administrative expenses increased by approximately 2.5 million, from 20 million to 22 million, an increase of around 12.5%. The main driver was increase in staff costs by around 2.3 million.

For gain on sale of assets held for sale, during the period, Ezdan sold a number of residential units, resulting in a recognized gain of approximately 3.5 million. For forex gain or losses, the group recorded a forex loss of approximately 3.7 million in Q1 '26, compared to a gain of 11 million in Q1 '25.

This movement was mainly driven by changes in the British pound sterling exchange rate. On finance costs, this decreased by approximately 65 million from 218 million to 153 million, representing a reduction of around 30%.

This was primarily driven by lower borrowing rates and improved profit margins on financing facilities. Moving now to the financial position, total assets stood at approximately 45.8 billion compared to 45.6 billion.

Cash and bank balances increased to 734 million from 511 million, an improvement of approximately 223 million, or 44%. Assets held for sale decreased by around 102 million as a result of selling residential units during the period.

Total liabilities decreased by 101 million from 12.1 billion to around 12 billion. Trade and other payables decreased by approximately 17 million.

Islamic borrowings decreased by a net amount of 84 million during the period. This reflects finance costs of approximately 153 million and repayments of approximately 237 million.

Total equity, including non-controlling interest, increased from 33.5 billion to 33.8 billion, an increase of approximately 227 million. The group share capital stands at 26.5 billion.

Retained earnings increased by 220 million, primarily reflecting the net profit generated during the period. For cash flow statement, net cash flows from operating activities were 353 million compared to 339 million.

Net cash flows from investing activities were 103 million compared to a net cash flows used in investing activities of 5 million. Net cash flows used in financing activities were 236 million compared to 305 million.

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

Hello, everyone. This is Mohamed Adnan from Arqaam Investment.

I have few questions. Could you highlight why there's a jump in revenue from malls?

My second question is what is the current structure of rents in mall? Is it fixed or it's turnover?

Third would be what is the current hotel occupancy and how's the current situation right now? What are the rates?

Thank you for questions. Regarding malls, it has significantly increased during the period because from year to year there is an incremental clause in the rental.

This resulted in increase in the revenue during the period. In addition, there the increase in occupancy rate.

These two factors has resulted in significant increase in revenue of the malls. For your second question of the rental structure, part of the rent is fixed.

It is increased by from average 2% to 5%, and some tenants 7% from year to year. There is another clause for turnover sharing of the profits of the sales.

What were your third questions again?

Hotel occupancy and current daily rate. How much is the decline?

For hotels, it's stable. No decline in the hotels itself because our hotels, it is not daily hotels.

It is most of our hotels, around 75% of the tenants, is long-term contracts. We are talking about from three to six months on average.

The daily customers is representing insignificant portion of the tenants of hotels.

Okay. One thing more, could you explain the gain in the income statement of 3.4 billion and other income of 9.7 billion?

Yes,

for the 3.5 million, as we mentioned, there was held-for-sale properties that has been sold during the period. We recognized 3.5.

This is the difference between the proceeds of 105—this is the proceeds—and the carrying value of 102 million. This resulted 3.

3.5 gain. Regarding the other income, it is mainly coming from favorable adjustments from utility provider during the period by around 5 million.

Okay. What's your outlook on the current situation?

For the current period, as all of us knows, there is a significant uncertainty about the current situation because the situation is evolving rapidly and there is uncertainty about what will the situation in the coming period.

Thank you so much, sir. Thank you for all your answers.

Thank you so much.

Thank you.

As 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. We look forward to speaking to you all for the second quarter results.

Thank you.