The firm made a net profit of SR227.5 million ($61 million) in the three months ending Sept. 30, compared with SR289.6 million in the same period a year earlier.

Analysts surveyed by Reuters expected the firm to post, on average, 258.95 million riyals in the third-quarter.

“The decline in third quarter net profit... is due to declined sales as the company seeks to improve profit margins for its land bank, in addition to declining sales of housing units due to the shortage in completed units for sale,” it said. 

The firm’s operational profit for the third-quarter declined by 14.8 percent to 289.9 million riyals compared with 340.3 million riyals in the same period a year earlier.

Its chairman, Yousef Al-Shalash, told Reuters last week that he expects the company to post better results toward the end of 2011 and during 2012 as sales and rents improve, both of which were negatively affected over the past three years.

Dar Al-Arkan will also diversify its sources of income over the next three years to reduce its reliance on land sales and increase its rent and housing unit income.