E Kocref CrReit (088260.KS) Q1 2025 Earnings Report

E Kocref CrReit reported QQ1 2025 results with revenue of KRW 11,437,920,000 and EBITDA of KRW 11,066,820,000, delivering a solid gross margin of 78.45% and an operating margin of 77.89%. The quarter shows modest top-line growth year-on-year (+2.14% revenue; +2.66% gross profit; +2.70% operating income) but a material year-over-year decline in net income (-39.41%), with QoQ improvements in net income (+22.79%). The strong EBITDA and operating cash flow proxy indicators point to resilient underlying rental income, yet the company carries a heavy interest burden and high leverage, which constrain bottom-line profitability and heighten refinancing risk in a rising-rate environment. Liquidity remains solid (cash and equivalents of KRW 14.11B and a current ratio of 2.24), while the balance sheet shows substantial long-term debt (KRW 425.78B) and net debt around KRW 411.67B, implying a debt-to-equity posture near 2.0. The overall signal is positive on operating efficiency and cash-generating capacity, but investors should scrutinize financing costs, debt maturity schedules, and potential leasing/off-market risks as key next catalysts. The absence of an explicit forward-looking guidance in QQ1 2025 suggests management is awaiting occupancy and rental-rate trajectories, as well as refinancing conditions, before setting formal targets.