E Kocref CrReit (088260.KS) Q4 2024 Earnings Report

E Kocref CrReit reported QQ4 2024 revenue of KRW 11.3167 billion, with gross profit of KRW 8.8315 billion and an EBITDA of KRW 10.9150 billion. The quarterly operating income stood at KRW 8.7646 billion and net income was KRW 2.4632 billion, equal to an EPS of KRW 39.00. While revenue and margin metrics remained robust, net income declined sharply on a year-over-year basis, down approximately 50.5% from the prior year, indicating a heavier debt service burden and non-operating expense drag despite resilient core property performance. Core profitability remains strong with gross margin near 78% and operating margin near 77%, underscoring a favorable asset mix and cost discipline in the portfolio.

From a balance sheet perspective, the REIT carries a substantial debt load: long-term debt of KRW 425.31 billion against cash and cash equivalents of KRW 20.13 billion and total assets of KRW 676.89 billion. Net debt sits around KRW 405.18 billion, yielding a debt-to-capitalization of ~65.5% and a debt-to-equity ratio of ~1.90x. This leverage profile highlights ongoing sensitivity to interest rate movements and refinancing risk, even as occupancy and rent collections appear stable enough to support generous margins. The dividend yield is approximately 4.97% with a payout ratio of 5.04%, suggesting a conservative distribution policy relative to cash flow, but a leverage-heavy balance sheet may constrain potential dividend growth.

Looking ahead, the company did not publish explicit forward guidance in QQ4 2024 disclosures. Given the sector dynamics in Korea and the sizable debt stack, investors should monitor refinancing timelines, interest rate environment, and tenant mix/occupancy trends. The stock offers a compelling yield and margin stability, but the elevated debt burden necessitates cautious weighting in an overall real estate/REIT portfolio.