Shinhan Alpha REIT Co Ltd (293940.KS) Q3 2024 Earnings Report

Shinhan Alpha REIT reported QQ3 2024 revenue of KRW 30.56 billion, representing a YoY increase of 17.05% and a QoQ rise of 0.60%. The quarter delivered an EBITDA of KRW 24.40 billion and an operating income of KRW 20.23 billion, with a net income of KRW 4.31 billion and EPS of KRW 48.24. Despite solid topline expansion and improving operating profitability, the company incurred a substantial interest expense of KRW 15.97 billion and a large negative other income/expense balance, resulting in a pre-tax income of KRW 5.08 billion and net income of KRW 4.31 billion (net margin ~14.1%). The balance sheet shows a highly leveraged profile, with total debt of KRW 1.468 trillion and a debt ratio of 0.651, alongside a cash balance of KRW 9.64 billion at period end. Cash flow from operations stood at KRW 7.32 billion, with a free cash flow of KRW 7.32 billion; however, investing activities consumed KRW 83.98 billion and financing activities generated KRW 93.94 billion, with a notable foreign exchange impact of KRW -19.50 billion, driving a net cash decrease of KRW 2.22 billion for the quarter. Management commentary is not available in the provided transcript data, limiting observable qualitative guidance. The company remains exposed to high debt service costs and interest-rate sensitivity, which heightens the importance of lease renewal outcomes, occupancy stability, and potential asset-level optimization to sustain cash flows in a rising-rate environment.