Jadwa REIT Al Haramain (4332.SR) Q2 2023 Earnings Report

Jadwa REIT Al Haramain Fund reported QQ2 2023 revenue of SAR 22.39 million, delivering a solid gross margin of approximately 64.5% and an EBITDA of SAR 19.73 million. Despite a robust operating performance, net income registered a negative SAR 2.52 million, driven by elevated financing costs and other non-operating charges. The quarter benefited from a favorable gross margin and strong operating leverage, but large interest expense (SAR 8.97 million) and substantial other expenses (-SAR 16.49 million) pressured the bottom line. The result translates into a negative net margin (-11.25%) and a negative EPS of SAR -0.038. On a cash-flow basis, operating cash flow was positive at SAR 5.40 million, yielding a positive free cash flow of SAR 5.40 million, while ending cash stood at SAR 16.05 million. Leverage remains meaningful with total debt of SAR 250.87 million and net debt of SAR 234.82 million, against equity of SAR 488.23 million and total assets of SAR 749.34 million. The debt burden implies an interest-coverage of about 1.56x and a debt-to-equity ratio of roughly 0.51, underscoring financing risk amid a high cost of capital environment. Notably, the company maintains its Shariah-compliant mandate and a biannual distribution policy that targets at least 90% of net profit (excluding capital gains). Given the current loss and limited dividend visibility, the near-term distribution profile is expected to remain constrained. Management commentary (where available) was not accompanied by a formal earnings call transcript in the provided data, limiting quote-driven insights for QQ2 2023.