MEFIC REIT Fund (4346.SR) Q2 2024 Earnings Report

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.