Sedco Capital REIT Fund delivered a strong operating quarter in QQ2 2025, with revenue of SAR 94.6 million and EBITDA of SAR 74.6 million, translating to an EBITDA margin of 78.9% and an operating margin of 60.5%. The core property portfolio continues to underpin healthy operating profitability, aided by cost discipline and lease‑related cash flows. However, investors should note that net income registered a loss of SAR 4.37 million for the quarter, driven by a substantial negative item within total other income/expenses of SAR −61.58 million. The underlying business appears cash‑generative (operating cash flow per share SAR 0.379 and free cash flow per share SAR 0.379) despite the reported net loss, underscoring the presence of non‑recurring or non-cash charges weighing on reported results. Liquidity remains adequate (current ratio 1.21) and leverage is moderate (debt ratio 0.503; debt capitalization ~0.54). The market trades at a price‑to‑book around 0.92 with a dividend yield of about 3.6%, positioning the stock as a potential entry for yield‑focused buyers should the one‑off items not recur. The key challenge is the sizeable negative “other income/expenses” that distorted quarterly profitability, which management will need to address to sustain earnings growth.
Over the longer horizon, the company’s Saudi REIT framework and diversified asset base offer growth avenues through rent escalations, portfolio expansion, and improved capital efficiency. The absence of explicit forward guidance in the disclosed materials means investors should monitor cash conversion dynamics, tenant mix, portfolio acquisitions, and debt maturity management going forward. The quarter’s statistically stronger operating metrics suggest favorable earnings momentum if non‑recurring charges normalize.