Jadwa REIT Al Haramain (4332.SR) Q2 2025 Earnings Report

Jadwa REIT Al Haramain Fund reported a solid second quarter for 2025 with revenue of SAR 30.82 million and EBITDA of SAR 23.81 million, delivering operating income of SAR 18.21 million. Net income stood at SAR 29.42 million, yielding a reported net margin of 95.4% for the quarter, primarily driven by a material contribution from total other income (SAR 11.21 million). This non-operating item substantially lifted net earnings and masked the underlying operating performance to some extent. Revenue growth was 7.6% year-over-year, while operating income rose ~32.6% YoY, signaling improved operating leverage despite a real estate asset base that typically exhibits low asset turnover. Earnings per share registered SAR 0.45, up from SAR 0.15 in Q2 2024, reflecting the combination of higher earnings and a stable share count of 66 million shares. From a balance sheet perspective, the fund maintained a prudent leverage profile with a debt ratio of 0.283 and a debt-to-capitalization ratio of 0.289, indicating modest financial risk given the asset-heavy nature of real estate REITs. Cash per share stood at SAR 0.457, while operating cash flow per share was SAR 0.168 and free cash flow per share also SAR 0.168, underscoring cash-generative capacity alongside potential distribution capacity. Management commentary on the quarter is not provided in the available transcript dataset; thus, the analysis focuses on quantified performance and sector dynamics. Looking ahead, the quarterly results underscore durable profitability and a favorable earnings trajectory, albeit with a meaningful one-off income contribution that should be considered when evaluating sustainable profitability and distribution capacity. The potential for continued upside exists if religious tourism demand remains resilient and if the portfolio can maintain occupancy levels in the Holy Cities. Investors should monitor occupancy trends, regulatory guidance on distributions, and any asset acquisitions that could alter the near-term cash flow profile.