MEFIC REIT Fund (4346.SR) Q4 2024 Earnings Report

MEFIC REIT Fund delivered a solid QQ4 2024 performance highlighted by revenue of SAR 28.68 million and a robust gross margin of 51.71%, supported by an EBITDA of SAR 28.67 million and operating income of SAR 14.57 million. The company posted a net income of SAR 6.65 million and basic earnings per share (EPS) of SAR 0.09 for the quarter, with a trailing EBITDA margin approaching 1.0x relative to revenue (EBITDARatio of 0.9996) and an operating margin of 50.8%. Cash generation via operating activities was strong at SAR 33.52 million, yet free cash flow remained negative at SAR -7.61 million due to capital expenditure of SAR 41.12 million and significant debt repayments. The quarterly results reflect a high-capex, asset-light-to-asset-build approach common in diversified REITs, where near-term liquidity is weighed against long-term asset quality and yield stability.

YoY and QoQ comparisons show a dramatic year-over-year revenue increase (YoY revenue growth of 180,553.6%) driven by portfolio contributions and base effects, while QoQ revenue declined by 19.9% as the company cycles through seasonal leasing and occupancy dynamics. Net income surged on an EBITDA-driven earnings base despite negative contributions from one-off items and higher depreciation (SAR 11.51 million in the quarter). Management commentary (where available) emphasizes portfolio optimization, stable recurring rent income, and a continued focus on maximizing asset quality to sustain distributions. Investors should monitor capex cadence, refinancing needs, and near-term liquidity given the modest cash balance at period end (SAR 0.166 million) and ongoing debt repayments.

Overall, MEFIC REIT Fund remains positioned to generate steady rental income from a diversified asset mix, with a cautious balance-sheet posture that prioritizes portfolio strengthening and future occupancy gains. The near-term investment thesis hinges on sustaining occupancy, managing leverage, and unlocking accretive growth through selective acquisitions or dispositions within its Riyadh, Jeddah, Makkah, and Dubai footprint.