Shinhan Alpha REIT reported a solid QQ2 2024 with revenue of KRW 30,375,754,841 and gross profit of KRW 21,950,555,778, delivering a gross margin of 72.26% and operating margin of 65.24%. Net income for the quarter was KRW 2,719,567,549, implying a net margin of 8.95% and quarterly earnings per share (EPS) of KRW 30.47. Compared to QQ2 2023, revenue rose about 47.0% YoY and 8.8% QoQ, underscoring meaningful top-line growth while profitability remained largely driven by stable core operations and favorable margin dynamics. However, the quarter carried a sizeable negative other income/expenses item (totalOtherIncomeExpensesNet) of KRW -16,362,461,470, which moderated pre-tax earnings and contributed to the modest after-tax result in the period.
Operating cash flow was KRW 4,357,195,615, yielding free cash flow of KRW 4,357,195,620. Cash outflows for investing activities and financing activities reflected portfolio management and leverage dynamics: investing cash outflow of KRW 2,131,070,556 and net financing inflow of KRW 1,385,803,128, with cash at period end of KRW 11,865,193,159 (start of period KRW 21,753,264,972). The balance sheet shows a highly leveraged profile, with long-term debt of KRW 1,150,561,916,743 and net debt of KRW 1,138,707,712,563, yielding a debt ratio of approximately 0.53 and a debt-to-equity ratio of 2.39. The dividend yield stands at 2.86% with a payout ratio of 5.74%, indicating a relatively conservative payout against a high-leverage backdrop. There is no formal forward guidance disclosed in the provided materials; investors should monitor rent escalations, occupancy, refinancing conditions, and cap rate environment as key catalysts going forward.
Overall, the QQ2 2024 performance reflects a REIT with resilient margins and cash generation but exposed to leverage and external rate/real estate cycle risks. Management commentary is not included in the data provided, so the assessment relies on the disclosed metrics and typical sector dynamics.