Shinhan Alpha REIT Co Ltd (293940.KS) Q4 2024 Earnings Report

Shinhan Alpha REIT reported QQ4 2024 revenue of KRW 9.5478 billion, marking a pronounced YoY decline of 81.0% and a QoQ decline of 68.8% versus the prior quarter. The company posted an operating loss of KRW -8.1207 billion and an EBITDA of KRW -8.1207 billion, underscoring ongoing earnings volatility at the operating level. Net income, however, was positive at KRW 3.7629 billion, driven by substantial other income totaling KRW 11.8836 billion which more than offset the operating loss. The reported earnings per share (EPS) stood at KRW 42.16, supported by a weighted average share count of 89.243 million shares. Cash generation remains robust: cash flow from operating activities was KRW 14.0135 billion, contributing to a free cash flow of KRW 14.0135 billion. Balance-sheet metrics paint a leveraged but liquid profile: total assets of KRW 2.662 trillion versus total liabilities of KRW 1.834 trillion and stockholders’ equity of KRW 651.197 billion. Net debt stood at KRW 1.2355 trillion, producing a debt level around 69% of assets and a net debt position after cash of KRW 1.2355 trillion. Notably, FX movements generated a large negative cash impact of KRW 26.0 billion during the period. The company ends QQ4 2024 with cash and short-term investments around KRW 98.0 billion and cash on hand of KRW 14.05 billion, underscoring ample liquidity to fund near-term obligations and potential asset-level optimizations. The QQ4 results reflect a transition phase: operating profitability remains challenged, but cash generation and equity position provide a foundation for strategic portfolio rebalancing and debt management. Investors should monitor leverage dynamics, FX exposure, portfolio occupancy trends, and any asset disposals or reacquisitions that could restore more consistent operating earnings and stabilize cash flows going into 2025.