Taleem REIT Fund (4333.SR) Q4 2024 Earnings Report

Taleem REIT Fund delivered a solid QQ4 2024 performance with strong profitability and uninterrupted cash flow generation. For the quarter ending 2024-12-31, revenue reached SAR 34.37 million, with gross profit of SAR 29.54 million and EBITDA of SAR 31.36 million, yielding an EBITDA margin of approximately 91.3% and an operating margin near 83.0%. Net income stood at SAR 17.03 million, translating to a net margin of roughly 49.5% and an earnings per share (EPS) of SAR 0.33. These results reflect a high-quality asset base and disciplined cost management, supporting a payout framework that typically distributes at least 90% of net income as dividends. Cash flow from operations was SAR 17.51 million, underscoring robust recurring cash generation, while free cash flow matched operating cash flow at SAR 17.51 million after corporate cash needs were accounted for. Dividends paid amounted to SAR 8.16 million during the period, with net cash provided by financing activities negative SAR 16.32 million and a modest net decrease in cash of SAR 0.52 million, leaving cash at period-end at SAR 1.08 million. The balance sheet shows total assets of SAR 857.76 million and a long-term debt load of SAR 298.26 million, with net debt around SAR 297.18 million and shareholders’ equity of SAR 549.69 million, signaling a conservative leverage stance relative to asset size. Relative to sector peers, Taleem trades at a price-to-sales multiple of approximately 15.2x and a price-to-book of about 0.95x, with a dividend yield around 1.56%. The quarter’s performance supports a constructive view on Taleem’s ability to sustain steady income, though the valuation premium versus some peers suggests the investment case rests on continued cash flow durability and disciplined capital allocation.