Executive Summary
MEFIC REIT Fund reported Q2 2025 revenue of SAR 16.26 million with a net income of SAR 3.86 million, yielding a net margin of 23.7% and an EBITDA margin of approximately 70.0%. The company continues to exhibit a high gross margin (100%) driven by the stated cost structure, but revenue declined by 43.5% year-over-year, while QoQ revenue remained flat. Operating income rose sharply year-over-year by ~464% despite the absence of tax expense, suggesting leverage of structural cost efficiency and portfolio performance against a backdrop of a one-off or non-operating charge in the period. Net income aesthetics are supported by an EBITDA-driven profitability foundation, yet the balance sheet shows modest liquidity and elevated receivables dynamics. Management commentary is not included in the provided data; no earnings call transcript was supplied for direct quotes.
Key Performance Indicators
Key Insights
Revenue: SAR 16,262,872; YoY change: -43.46%; QoQ change: 0.00%
Gross Profit: SAR 16,262,872; YoY: +20.69%; QoQ: 0.00%
Operating Income: SAR 9,278,286; YoY: +464.49%; QoQ: 0.00%
Net Income: SAR 3,855,955; YoY: +115.77%; QoQ: 0.00%
EPS: SAR 0.0526; YoY: +115.94%; QoQ: 0.00%
EBITDA: SAR 11,381,880; EBITDARatio: 0.6999; Operating Income Margin: 57.05%
Net Profit Margin: 23.71%; Gross Margin: 100%
Liquidity: Current ratio 1.081x; Quick ratio 1.081x; Cash ratio 0.0048x
Leverage: Debt ratio 0.436x; De...
Financial Highlights
Revenue: SAR 16,262,872; YoY change: -43.46%; QoQ change: 0.00%
Gross Profit: SAR 16,262,872; YoY: +20.69%; QoQ: 0.00%
Operating Income: SAR 9,278,286; YoY: +464.49%; QoQ: 0.00%
Net Income: SAR 3,855,955; YoY: +115.77%; QoQ: 0.00%
EPS: SAR 0.0526; YoY: +115.94%; QoQ: 0.00%
EBITDA: SAR 11,381,880; EBITDARatio: 0.6999; Operating Income Margin: 57.05%
Net Profit Margin: 23.71%; Gross Margin: 100%
Liquidity: Current ratio 1.081x; Quick ratio 1.081x; Cash ratio 0.0048x
Leverage: Debt ratio 0.436x; Debt to equity 0.823x; Long-term debt to capitalization 0.402x; Total debt to capitalization 0.451x
Efficiency: Receivables turnover 0.699x; Asset turnover 0.0165x; Fixed asset turnover 0.0198x; CFO per share SAR 0.284; FCF per share SAR 0.284
Valuation (as of 2025-06-30): P/E 17.77x; P/S 16.85x; P/BV 0.524x; EV/EBITDA 61.90x; Dividend yield 0.00%
Source: Company filings and peer data provided.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
16.26M |
-43.46% |
0.00% |
| Gross Profit |
16.26M |
20.69% |
0.00% |
| Operating Income |
9.28M |
464.49% |
0.00% |
| Net Income |
3.86M |
115.77% |
0.00% |
| EPS |
0.05 |
115.94% |
0.00% |
Key Financial Ratios
operatingProfitMargin
57.1%
operatingCashFlowPerShare
$0.28
freeCashFlowPerShare
$0.28
Management Commentary
Note: The earnings transcript in the data is empty, and no management quotes are provided for QQ2 2025. Therefore, no verbatim quotes or thematic quotes are included. If a transcript becomes available, quotes can be organized by themes such as strategy, portfolio optimization, occupancy/rent escalations, capex plans, and capital deployment.
Forward Guidance
No explicit forward guidance was disclosed in the QQ2 2025 filing provided. In the absence of formal guidance, the forward-looking assessment hinges on macro real estate trends in KSA and the UAE, occupancy stability, rent escalations on renewal/renegotiations, portfolio optimization opportunities, and the ability to manage leverage. Expected drivers include: (i) steady NOI contribution from diversified asset classes, (ii) potential monetization or prudent deployment of capital to enhance portfolio cash flow, (iii) modest growth in occupancy and rent collection efficiency, and (iv) continued emphasis on cost discipline to protect EBITDA margins. Management commentary, when available, would be critical to confirm occupancy assumptions, lease expiry profiles, capex plans, and debt maturity scheduling. Investors should monitor: rent collection trends, line-item operating expenses, any one-time charges, and debt maturity profiles.