RDS: Revenue Up 85% in the First Half Due to Activity Acceleration in Q2

The Dar Saada Residences Group achieved a pre-sales level of 1,132 properties during the first half of 2025, thanks to its ongoing commercial strategy focused on reducing finished product inventory. The secured revenue remains stable at 3.7 billion MAD, primarily attributed to the signing of agreements related to the resettlement program in 2024. In terms of revenue, the Group reported 170 million MAD for the first half of 2025, compared to 92 million MAD during the same period in 2024, marking an increase of 84.8%. Specifically, in Q2, revenue surged by 178%, reaching 106 million MAD, up from 38 million MAD in Q2 2024. The total number of units launched in production stands at nearly 11,800, with 6,100 units launched in the first half of 2025. The company noted that an update to the accounting plan for the real estate sector (PCSII) was implemented starting January 1, 2025. Consequently, from this date, the financial statements will be affected by the divergence between the new accounting method established by CNC Notice No. 20 for revenue recognition and the method previously used by the Dar Saada Residences Group under the PCSI regulations in effect until December 31, 2024. However, it was emphasized that the overall activity will not be directly impacted by this change in accounting method but rather by its accounting representation in the financial statements, which will feature a timing shift in revenue recognition and the resulting inventory reduction. As of January 1, 2025, the Group has modified its revenue recognition method for its real estate promotion activities. In accordance with a reassessment of control transfer criteria under IFRS 15, revenue is now recognized at the date of signing the notarial deed (legal delivery of the property). This change provides a better representation of when control of the real estate is effectively transferred to clients, aligning with new local accounting requirements. Regarding debt management, the Group repaid 268 million MAD of financial debts, excluding interest, as part of its ongoing debt control policy. Thus, total debt for the first half of 2025, including lease contracts (IFRS 16) and excluding short-term cash, amounts to 1.63 billion MAD, down from 1.71 billion MAD at the end of 2024. There have been no changes to the consolidation perimeter compared to the end of 2024. Additionally, the Dar Saada Residences Group did not acquire any land during the second quarter of 2025.