Executive Summary
MEFIC REIT Fund reported Q2 2024 revenue of SAR 35.83 million, up 14.0% year over year and 24.6% quarter over quarter, supported by a diversified portfolio spanning residential, retail, hospitality and office properties across Riyadh, Jeddah, Makkah and Dubai. Gross profit reached SAR 23.17 million with a margin of 64.68%, while EBITDA stood at SAR 16.88 million and net income totaled SAR 1.47 million (EPS SAR 0.02). The quarter benefited from favorable operating leverage as revenue expanded, yet net margins remained modest at ~4.1%, reflecting ongoing financing and non-operating cost dynamics.
Cash flow from operations was SAR 7.61 million, yielding free cash flow of SAR 7.61 million. Cash balances were SAR 4.31 million at quarter-end, with total debt totaling SAR 437.92 million and long-term debt at SAR 347.22 million, placing MEFIC REIT in a leverage-sensitive position for a REIT. Dividends paid during the period were SAR 5.86 million and financing activities reduced cash by SAR 11.61 million, contributing to a net cash outflow of SAR 4.01 million for the quarter. Key valuation metrics show a price-to-book around 0.65 and a dividend yield near 1.8%. The earnings mix and margins suggest improving operational efficiency but continue to reflect a debt-heavy capital structure that investors should monitor in a rising-rate environment.
Key Performance Indicators
QoQ: 71.98% | YoY:1 563.81%
QoQ: 305.77% | YoY:146.25%
QoQ: 106.00% | YoY:205.87%
QoQ: 106.06% | YoY:205.82%
Key Insights
Revenue: SAR 35,829,272 (+YoY 14.0%, QoQ 24.56%); Gross Profit: SAR 23,174,677; Gross Margin: 64.68% (0.647); EBITDA: SAR 16,875,640; EBIT: SAR 5,237,820; Operating Margin: 14.62%; Net Income: SAR 1,466,799; Net Margin: 4.09%; EPS: SAR 0.02; Cash from Operations: SAR 7,605,282; Free Cash Flow: SAR 7,605,282; Dividends Paid: SAR -5,860,798; Net Change in Cash: SAR -4,005,515; Cash at End of Period: SAR 4,305,378; Total Assets: SAR 997,141,470; Total Debt: SAR 437,917,908; Net Debt: SAR 433,612,53...
Financial Highlights
Revenue: SAR 35,829,272 (+YoY 14.0%, QoQ 24.56%); Gross Profit: SAR 23,174,677; Gross Margin: 64.68% (0.647); EBITDA: SAR 16,875,640; EBIT: SAR 5,237,820; Operating Margin: 14.62%; Net Income: SAR 1,466,799; Net Margin: 4.09%; EPS: SAR 0.02; Cash from Operations: SAR 7,605,282; Free Cash Flow: SAR 7,605,282; Dividends Paid: SAR -5,860,798; Net Change in Cash: SAR -4,005,515; Cash at End of Period: SAR 4,305,378; Total Assets: SAR 997,141,470; Total Debt: SAR 437,917,908; Net Debt: SAR 433,612,530; Equity: SAR 508,763,548; Debt/Assets: 0.439; Debt/Equity: 0.861; ROA: 0.15%; ROE: 28.8%; ROCE: 0.53%; P/BV: 0.65; P/S: 9.16; P/E: 55.95; Dividend Yield: 1.79%; Operating Cash Flow/Sales: 0.212; Debt Maturity Profile and liquidity indicators are not fully disclosed in the provided data.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
35.83M |
14.04% |
24.56% |
| Gross Profit |
23.17M |
1 563.81% |
71.98% |
| Operating Income |
5.24M |
146.25% |
305.77% |
| Net Income |
1.47M |
205.87% |
106.00% |
| EPS |
0.02 |
205.82% |
106.06% |
Key Financial Ratios
operatingProfitMargin
14.6%
operatingCashFlowPerShare
$0.1
freeCashFlowPerShare
$0.1
Management Commentary
Transcripts were not provided in the data set. No management quotes or call transcripts are available to extract themes or quotes.
Forward Guidance
No explicit forward guidance was provided in the supplied data. Given the REIT structure and market dynamics in KSA and the UAE, investors should monitor: (i) occupancy and rent escalations across the asset classes, (ii) refinancing risk and maturity profile of the long-term debt (current long-term debt balance SAR 347.22m), (iii) development of interest rates and their impact on debt service costs, (iv) potential acquisitions to grow the diversified portfolio, and (v) dividend sustainability relative to free cash flow. Baseline view: modest revenue growth and stable cash flow with gradual margin improvement as cost efficiencies and portfolio optimization take root. Upside scenarios depend on successful capex deployment and favorable lease renewals; downside risks stem from higher borrowing costs and weaker leasing conditions in any of the asset classes.