Jadwa REIT Al Haramain (4332.SR) Q4 2025 Earnings Report

Jadwa REIT Al Haramain Fund reported QQ4 2025 results showing a meaningful cash-generating machine despite a muted revenue backdrop. Revenue for the quarter was SAR 12.30 million with a gross loss of SAR 2.13 million, but EBITDA remained robust at SAR 15.14 million and net income registered SAR 1.36 million. The contrast between EBITDA and net income reflects the fund’s operating structure, interest expense of SAR 8.10 million, substantial depreciation, and notable other income/charges, underscoring the importance of a cash-flow orientation for this REIT. Operating cash flow amounted to SAR 21.78 million for the quarter, with free cash flow near SAR 21.78 million and dividends paid totaling SAR 15.84 million, illustrating a strong distribution capability relative to net income in the period and reinforcing the fund’s policy of regular distributions funded by operating cash flow.

Year-over-year (YoY) revenue declined modestly by 1.6% in the quarter, while net income fell sharply by 91.7% (QoQ down 95.4%), signaling seasonal/asset-level variability and higher financing costs weighing on bottom-line profitability. The company continues to operate in a capital-light framework given its REIT structure and Shariah-compliant mandate, focusing on income-generating real estate assets concentrated in the Holy cities of Makkah and Madinah. Management commentary (where available) is expected to emphasize occupancy optimization, asset management, and disciplined capital allocation. The long-term investment thesis remains anchored in pilgrimage-driven demand, with potential upside from occupancy improvements, rent escalations, and selective asset recycling, though near-term earnings visibility is tempered by cyclicality in tourism and travel volumes.