Exchange: SAU | Sector: Real Estate | Industry: REIT Diversified
Q1 2025
Published: Mar 31, 2025
Earnings Highlights
Revenue of $16.26M up 102% year-over-year
EPS of $0.05 increased by 52% from previous year
Gross margin of 100.0%
Net income of 3.86M
"Transcript data not available in the provided material." - Management
MEFIC REIT Fund (4346.SR) QQ1 2025 Results â Diversified Real Estate Portfolio Delivers Positive EBITDA Across Recurring Income Assets
Executive Summary
In QQ1 2025, MEFIC REIT Fund reported a strong start to the year, underscored by a high gross profit and robust EBITDA margins driven by a diversified portfolio of recurring income assets across Riyadh, Jeddah, Makkah and Dubai. Revenue stood at SAR 16.26 million, with gross profit equal to revenue (gross margin reported at 100%), and EBITDA of SAR 11.38 million, yielding an EBITDA margin of approximately 70%. Operating income reached SAR 9.28 million (operating margin ~57%), while net income printed at SAR 3.86 million, translating to a net margin of ~23.7% and EPS of SAR 0.0526.
Key Performance Indicators
Revenue
16.26M
QoQ: -54.61% | YoY:102 323.93%
Gross Profit
16.26M
1.00% margin
QoQ: -29.82% | YoY:127 272.12%
Operating Income
9.28M
QoQ: 77.14% | YoY:909 357.56%
Net Income
3.86M
QoQ: 162.88% | YoY:59 313.15%
EPS
0.05
QoQ: 163.00% | YoY:52 500.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: SAR 16,262,872; YoY growth +102,323.93%; QoQ change -54.61% (reflecting seasonal/portfolio mix and timing in revenue recognition).
Gross Profit: SAR 16,262,872; Gross margin effectively 100% as presented (grossProfitRatio 1.0000).
EBITDA: SAR 11,381,880; EBITDA margin (EBITDARatio) ~0.70 indicating strong operating leverage within the portfolio.
Operating Income: SAR 9,278,286; Operating margin ~0.57.
Total Other Income/Expenses Net: SAR -5,422,331 (a drag on pre-tax income).
Financial Highlights
Overview of key metrics and trend analysis (Q1 2025 vs prior periods):
- Revenue: SAR 16,262,872; YoY growth +102,323.93%; QoQ change -54.61% (reflecting seasonal/portfolio mix and timing in revenue recognition).
- Gross Profit: SAR 16,262,872; Gross margin effectively 100% as presented (grossProfitRatio 1.0000).
- EBITDA: SAR 11,381,880; EBITDA margin (EBITDARatio) ~0.70 indicating strong operating leverage within the portfolio.
- Operating Income: SAR 9,278,286; Operating margin ~0.57.
- Total Other Income/Expenses Net: SAR -5,422,331 (a drag on pre-tax income).
- Income Before Tax: SAR 3,855,955; Pre-tax margin ~23.7%.
- Net Income: SAR 3,855,955; Net margin ~23.7%; Earnings per Share (EPS): SAR 0.0526; Weighted average shares outstanding: ~73.28 million.
- YoY and QoQ earnings quality: Net income YoY +59,313.15%; QoQ +162.88% as per provided earnings metrics (reflecting base effects and portfolio/expense timing).
- Four-quarter snapshot confirms a volatile mix across quarters, with Q1 2025 showing stronger profitability metrics relative to some prior quarters.
Notes: The data set includes limited balance sheet details; tax expense is reported as null, consistent with REIT treatment in certain jurisdictions and the presentation here.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
16.26M
102 323.93%
-54.61%
Gross Profit
16.26M
127 272.12%
-29.82%
Operating Income
9.28M
909 357.56%
77.14%
Net Income
3.86M
59 313.15%
162.88%
EPS
0.05
52 500.00%
163.00%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights unavailable: The provided data set does not include an earnings call transcript or management discussion quotes. As a result, thematic highlights and management narrative are not extractable from the input. A follow-up with the official QQ1 2025 transcript would enable a thematic synthesis (strategy, operations, market conditions) and quote extraction.
Transcript data not available in the provided material.
â Management
Transcript data not available in the provided material.
â Management
Forward Guidance
No explicit forward guidance is provided within the supplied materials. Based on the disclosed metrics, the near-term outlook for MEFIC REIT Fund hinges on: (1) stabilization of occupancy and rent renewals across its diversified asset base (residential, retail, hospitality, office) in KSA and Dubai; (2) ongoing cost discipline supporting EBITDA margins around 70% and operating margin around 57%; (3) sustainability of negative other income/expenses and its impact on net income; (4) debt and capital structure dynamics if any, and subsequent distributions typical of REITs. Management commentary (if any) would be needed to confirm targets for occupancy, rent escalations, capex plans, and distribution policy. In the absence of guidance, investors should monitor lease expiries, regional macro conditions (Saudi real estate activity, Gulf markets), and any announced acquisitions or asset disposals that could alter the revenue base and margin profile.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
4346.SR Focus
1.00%
N/A
N/A
N/A
4340.SR
1.00%
98.70%
1.62%
16.83%
4345.SR
57.60%
-17.40%
-0.39%
-41.78%
4339.SR
0.00%
0.00%
0.00%
0.00%
4330.SR
66.80%
37.80%
1.15%
22.63%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
MEFIC REIT Fund demonstrates solid near-term operating profitability in QQ1 2025, with revenue and EBITDA support from a diversified asset base. The absence of comprehensive balance sheet data and explicit forward guidance warrants caution; investors should monitor occupancy trends, lease renewals, capex plans, and any changes to distribution policy. If the portfolio continues to generate stable recurring income and the negative other income/expense component remains modest or manageable, the fund could sustain attractive EBITDA margins and a meaningful net income contribution. A comparative assessment against peers suggests MEFIC's QQ1 2025 profitability is competitive, but deeper disclosure on leverage and cash flow generation is needed to validate long-term risk-adjusted return potential.
Key Investment Factors
Growth Potential
Diversified asset mix (residential, retail, hospitality, office) across Saudi Arabia and Dubai provides multiple rent streams and potential upside from occupancy improvements, inflation-linked leases, and asset acquisitions. The Q1 2025 revenue uplift and solid EBITDA indicate a foundation for steady cash generation if occupancy remains healthy and capex stays disciplined.
Profitability Risk
Key risks include: (i) concentration in a few geographic markets; (ii) variability in occupancy/renewal rates and lease escalations; (iii) negative swing in other income/expenses that can materially affect net income; (iv) debt and liquidity risk not disclosed in the provided data; (v) regulatory or tax changes impacting REIT structures; (vi) market risk from real estate cycles and interest rate movements.
Financial Position
Limited balance sheet disclosures in the provided data restrict a full assessment of leverage, liquidity, and coverage metrics. Reported EBITDA and operating income suggest healthy operating profitability, but the sizable negative other income/expenses and absent tax expense require further clarity on financing costs, debt maturity, and distribution capacity.
SWOT Analysis
Strengths
Diversified asset base across residential, retail, hospitality, and office segments in Saudi Arabia and Dubai, reducing sector-specific exposure.
Strong operating profitability with EBITDA margins around 70% and operating margins around 57% in QQ1 2025.
Visible positive YoY momentum in key profitability metrics (e.g., net income YoY growth and EPS growth per the provided data).
MEFIC REIT Fund (4346.SR) QQ4 2023 Results Analysis â Revenue SAR 28.77m, Net Loss SAR 24.45m; EBITDA SAR 5.92m; Leverage and Cash Flow in a Diversi...