SEDCO Capital REIT Fund (4344.SR) Q1 2024 Earnings Report

SEDCO Capital REIT Fund posted a Q1 2024 quarter with strong margin discipline and solid cash generation, underscoring a resilient profitability profile for a diversified Saudi REIT. Revenue of SAR 44.65 million supported an impressive gross margin of 90.46% and an EBITDA of SAR 35.84 million, contributing to a net income of SAR 8.89 million and earnings per share (EPS) of SAR 0.0476. On a YoY basis, revenue and earnings metrics show meaningful improvement, while QoQ comparisons reveal seasonality and a pronounced sequential revenue decline (QoQ revenue down ~50.5%). Operating cash flow was positive at SAR 26.43 million, enabling a free cash flow profile of SAR 26.43 million and dividend payments of SAR 13.61 million during the quarter. The balance sheet exhibits solid liquidity with cash and cash equivalents of SAR 54.68 million and a current ratio of 2.33, while leverage remains manageable (total debt SAR 794.87 million; long-term debt SAR 784.12 million; debt-to-equity ~0.52; debt-to-capitalization ~0.34). Management commentary for QQ1 2024 is not captured in the provided transcript, limiting qualitative corroboration of drivers such as occupancy, lease escalations, or asset-level performance. The company’s income taxes were not material in the quarter, aligning with REIT tax principles in Saudi Arabia. Going forward, the key questions revolve around NOI resilience, lease renewals, rent escalations, and the ability to sustain distributions in light of seasonality and refinancing dynamics.