The Société Immobilière et de Participations (SIMPAR), a real estate developer listed on the Tunis Stock Exchange and backed by the Banque Nationale Agricole (BNA) group, has published its individual financial statements for the year ending December 31, 2025.
The figure that immediately stands out is a net loss of 5,297,427 dinars, worsening compared with the 3,480,889 dinars loss recorded in 2024.
However, this headline figure masks a more nuanced reality, where the core business is improving and the balance sheet contains underlying value not fully reflected in the accounts.
The first positive signal comes from commercial activity. Real estate sales increased from 3,757,157 dinars to 4,269,107 dinars, up 13.6%.
The momentum is even stronger in the residential segment, the company’s core business.
Housing sales surged by 73.6%, rising from 2,325,400 dinars to 4,036,482 dinars. This represents a tangible commercial recovery, reflecting the actual sale of completed developments.
This rebound is supported by a healthy production base. Operating income remains positive at 1,548,701 dinars, broadly stable compared to 1,560,242 dinars in 2024.
Gross operating surplus, the purest indicator of operational performance, stands at 1,530,460 dinars. In short, the real estate development activity itself continues to generate a stable and comfortable surplus.
Loss not driven by sales
If the company is posting a loss despite a profitable core business, the reason lies elsewhere, in financial expenses. These rose to 6,841,331 dinars, up 36.3% from 5,019,616 dinars a year earlier. This increase is linked to a strategy of expanding inventory financed through borrowing, with non-current debt rising from 34,976,060 dinars to 44,413,408 dinars.
The loss is therefore mainly a financing carry cost, expected to ease as ongoing projects are sold.
The real estate inventory, far from being a burden, represents the raw material for future revenue. Its gross value increased from 76,662,878 dinars to 94,984,389 dinars.
This expansion includes the commissioning of the Résidence Agate, recorded at 27,038,075 dinars in completed works, now ready to generate sales in upcoming years. The M41 Raoued project, with 22,948,187 dinars in ongoing works, is also contributing to future pipeline growth.
The most striking element of the file remains the hidden value of the balance sheet. SIMPAR’s stake in SODET SUD contains a significant unrealized capital gain. An independent valuation estimates the 12 land parcels held by this subsidiary at 40.832 million dinars, compared with a book value of 13.888 million dinars, an unrealized gain of 26.944 million dinars not reflected in the accounts. This latent value alone exceeds total shareholders’ equity, which stands at 19,237,994 dinars.
Comfortable cash position thanks to bank support
A key element of confidence: the auditors issued an unqualified opinion. According to both auditors, the financial statements fairly present the company’s position, with no going-concern uncertainty or significant internal control deficiencies identified. For a loss-making company, this is an important sign of methodological solidity.
Cash flow also supports this interpretation. Net cash flow turned positive again at 339,868 dinars, compared with a negative 3,311,496 dinars in 2024. This improvement was supported by the shareholder bank, which in 2025 agreed to reschedule 16,768,006 dinars in overdue payments, easing short-term pressure.
Overall, SIMPAR appears to be a company whose core business is functioning, whose balance sheet is stronger than reported earnings suggest, and whose loss mainly reflects an investment phase rather than structural weakness. The key challenge for upcoming years will be to convert its built-up inventory into sales quickly enough to reduce debt pressure.
