SEDCO Capital REIT Fund (4344.SR) Q4 2024 Earnings Report

SEDCO Capital REIT Fund reported Q4 2024 revenue of SAR 87.41 million with a gross margin of 69.83% and an EBITDA of SAR 70.23 million, suggesting a highly efficient operating base for a diversified Saudi REIT. Operating income amounted to SAR 53.13 million, translating to an operating margin of 60.78%. Despite strong operating performance, the quarter recorded a net loss of SAR 3.38 million as a result of a substantial negative non-operating item line (total other income/expenses net of SAR -56.51 million) which overshadowed operating profitability and drove a negative net margin of -3.87% and an EPS of -0.018. Free cash flow stood at SAR 61.38 million, and operating cash flow was SAR 61.38 million, underscoring robust cash generation from core activities. Cash balance at period end was SAR 1.30 million, while total debt stood at SAR 965.59 million (long-term debt of SAR 953.49 million), yielding a net debt position of SAR 964.29 million. The fund paid dividends of SAR 70.09 million during the quarter, with a negative payout ratio reported as -20.75%, reflecting the disconnect between net income and distributions in this period. The balance sheet shows total assets of SAR 2.478 billion and total stockholders’ equity of SAR 1.454 billion, highlighting a solid equity base to support ongoing capitalization needs. The combination of strong operating cash flow and relatively conservative asset base supports a constructive near-term investment thesis, though investors should monitor the non-operating drivers of quarterly profitability and the trajectory of distributions relative to earnings.