Musharaka REIT sees negative FFO of SAR 5.5 mln, SAR 634,800 net profit in H1 2023

14/08/2023 Argaam Exclusive

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Musharaka REIT Fund reported a net profit of SAR 634,800 (SAR 0.01 per unit) for the first half of 2023, from SAR 12.9 million a year earlier, Musharaka Capital, the fund manager, said in a statement to Tadawul.

Funds from operations (FFO) came in at a negative SAR 5.5 million during the six-month period, from a positive SAR 23.7 million in H1 2022.

Financials (M)

Item	6m 2022	6m 2023	Change‬
Rental Income	50.38	46.57	(7.6 %)
Funds from Operations(FFO)	23.73	(5.48)	(123.1 %)
Net Income	12.92	0.64	(95.1 %)
No of shares	88.00	88.00	-
Operating EPS (Riyals)	0.27	(0.06)	(123.1 %)
EPS (Riyals)	0.15	0.01	(95.1 %)

Funds from operations (FFO) came in at a negative SAR 5.5 million during the six-month period, from a positive SAR 23.7 million in H1 2022.

The fund attributed the decline in net profit to a decrease in rental leasing income to SAR 46.6 million in H1 2023, compared to SAR 50.4 million in the same period of the previous year.

The fund also cited a jump in financing costs to SAR 28.8 million in H1 2034 from SAR 12 million a year earlier. Consumption expenses also grew to SAR 15.3 million in the current period, versus SAR 13.4 million in H1 2022.

Moreover, operating expenses increased to SAR 12.2 million in H1 2023 from SAR 4.3 million in H1 2022.

This came despite recording a reversal of the impairment provision on investment properties in the current period. This was besides logging a financing income on short-term Murabaha deposits of SAR 628,000 in the current period, compared to nothing for the same period of the previous year.

Balance Sheet (Million)

Item	6m 2022	6m 2023	Change‬
Total Assets	1,689.22	1,641.40	(2.8 %)
Total Debt	790.95	794.87	0.5 %
Net assets attributable to the Unitholders Item	845.29	799.91	(5.4 %)
Market value of net assets	953.35	904.03	(5.2 %)

Net asset value (NAV) stood at SAR 799.90 million by the end of H1 2023, while net book value per unit reached SAR 9.09.

The market value of assets stood at SAR 904.03 million as of June 30, 2023, with a market value per unit of SAR 10.27.

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Financial results (Million)

Period	Rental Income	Change	Funds from Operations(FFO)	Change	Net Income	Change
H1 2018	65.47	-	54.71	-	42.46	-
H2 2018	57.63	-	38.17	-	12.41	-
2018	123.10	-	92.88	-	54.87	-
H1 2019	47.52	(27.4 %)	29.02	(47.0 %)	22.80	(46.3 %)
H2 2019	47.13	(18.2 %)	20.96	(45.1 %)	17.29	39.3 %
2019	94.65	(23.1 %)	49.97	(46.2 %)	40.09	(26.9 %)
H1 2020	51.07	7.5 %	29.96	3.3 %	23.07	1.2 %
H2 2020	42.38	(10.1 %)	16.66	(20.5 %)	13.00	(24.8 %)
2020	93.46	(1.3 %)	46.62	(6.7 %)	36.08	(10.0 %)
H1 2021	43.32	(15.2 %)	24.40	(18.6 %)	14.78	(35.9 %)
H2 2021	45.47	7.3 %	22.87	37.3 %	15.09	16.0 %
2021	88.78	(5.0 %)	47.27	1.4 %	29.87	(17.2 %)
H1 2022	50.38	16.3 %	23.73	(2.8 %)	12.92	(12.6 %)
H2 2022	50.24	10.5 %	10.11	(55.8 %)	(2.02)	(113.4 %)
2022	100.62	13.3 %	33.84	(28.4 %)	10.90	(63.5 %)
H1 2023	46.57	(7.6 %)	(5.48)	(123.1 %)	0.64	(95.1 %)

Period	Rental Income	Change	Funds from Operations(FFO)	Change	Net Income	Change
2018	123.10	-	92.88	-	54.87	-
2019	94.65	(23.1 %)	49.97	(46.2 %)	40.09	(26.9 %)
2020	93.46	(1.3 %)	46.62	(6.7 %)	36.08	(10.0 %)
2021	88.78	(5.0 %)	47.27	1.4 %	29.87	(17.2 %)
2022	100.62	13.3 %	33.84	(28.4 %)	10.90	(63.5 %)

Balance Sheet (Million)

Period	Total Assets	Change	Total Debt	Change	Net assets attributable to the Unitholders Item	Change	Market value of net assets	Change
H1 2018	1,072.49	-	160.73	-	891.66	-	872.44	-
H2 2018	1,057.67	-	159.79	-	848.63	-	852.32	-
H1 2019	1,362.32	27.0 %	424.62	164.2 %	889.94	(0.2 %)	842.05	(3.5 %)
H2 2019	1,273.89	20.4 %	337.36	111.1 %	907.22	6.9 %	959.99	12.6 %
H1 2020	1,337.70	(1.8 %)	402.14	(5.3 %)	899.50	1.1 %	965.18	14.6 %
H2 2020	1,354.14	6.3 %	450.59	33.6 %	881.70	(2.8 %)	950.16	(1.0 %)
H1 2021	1,347.91	0.8 %	453.92	12.9 %	870.08	(3.3 %)	952.99	(1.3 %)
H2 2021	1,441.77	6.5 %	547.49	21.5 %	858.77	(2.6 %)	947.84	(0.2 %)
H1 2022	1,689.22	25.3 %	790.95	74.2 %	845.29	(2.8 %)	953.35	0.0 %
H2 2022	1,657.16	14.9 %	796.86	45.5 %	816.87	(4.9 %)	895.37	(5.5 %)
H1 2023	1,641.40	(2.8 %)	794.87	0.5 %	799.91	(5.4 %)	904.03	(5.2 %)

Period	Total Assets	Change	Total Debt	Change	Net assets attributable to the Unitholders Item	Change	Market value of net assets	Change
2018	1,057.67	-	159.79	-	848.63	-	852.32	-
2019	1,273.89	20.4 %	337.36	111.1 %	907.22	6.9 %	959.99	12.6 %
2020	1,354.14	6.3 %	450.59	33.6 %	881.70	(2.8 %)	950.16	(1.0 %)
2021	1,441.77	6.5 %	547.49	21.5 %	858.77	(2.6 %)	947.84	(0.2 %)
2022	1,657.16	14.9 %	796.86	45.5 %	816.87	(4.9 %)	895.37	(5.5 %)

Multiple Ratios (End of Period Price)

Compared With The

Period	Price/ Earnings (P/E)(x)	Price/FFO(x)
Q2 2014	-	-
Q4 2014	-	-
Q2 2015	-	-
Q4 2015	-	-
Q2 2016	-	-
Q4 2016	-	-
Q2 2017	-	-
Q4 2017	-	-
Q2 2018	-	-
Q4 2018	13.36	7.89
Q2 2019	20.32	10.65
Q4 2019	20.83	16.71
Q2 2020	17.44	13.83
Q4 2020	23.98	18.56
Q2 2021	35.85	24.26
Q4 2021	29.23	18.47
Q2 2022	30.22	18.17
Q4 2022	More than 100	23.02
Q2 2023	NEG	More than 100

Period	Price/ Earnings (P/E)(x)	Price/FFO(x)
2013	-	-
2014	-	-
2015	-	-
2016	-	-
2017	-	-
2018	13.36	7.89
2019	20.83	16.71
2020	23.98	18.56
2021	29.23	18.47
2022	More than 100	23.02

Unit Data (Riyal)

Compared With The

Period	Operating EPS	EPS	Book Value	Market Value
H1 2018	0.62	0.48	10.13	9.91
H2 2018	0.43	0.14	9.64	9.69
H1 2019	0.33	0.26	10.11	9.57
H2 2019	0.24	0.20	10.31	10.91
H1 2020	0.34	0.26	10.22	10.97
H2 2020	0.19	0.15	10.02	10.80
H1 2021	0.28	0.17	9.89	10.83
H2 2021	0.26	0.17	9.76	10.77
H1 2022	0.27	0.15	9.61	10.83
H2 2022	0.11	(0.02)	9.28	10.17
H1 2023	(0.06)	0.01	9.09	10.27

Period	Operating EPS	EPS	Book Value	Market Value
2018	1.06	0.62	9.64	9.69
2019	0.57	0.46	10.31	10.91
2020	0.53	0.41	10.02	10.80
2021	0.54	0.34	9.76	10.77
2022	0.38	0.12	9.28	10.17

Financial Ratios

	Current
Number of Units (Million)	88.00
Net Income/Unit ( Riyal)	(0.09 )
Funds from operations/Unit ( Riyal)	(0.07 )
P/E (X) (TTM)	NEG
Current Price/FFO (X)	NEG
Par Value ( Riyal)	10.00
Price/book	0.53
Asset Growth (%)	(1.40 )
Revenue Growth (%)	(5.07 )
Net Income Growth (%)	(176.59 )
Adjusted P/E (Last12) (X)	Neg

Musharaka REIT Fund (MUSHARAKA REIT)

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Musharaka REIT sees negative FFO of SAR 5.5 mln, SAR 634,800 net profit in H1 2023

View other reports

Financials (M)

Balance Sheet (Million)

Financial results (Million)

Financial results (Million)

Balance Sheet (Million)

Balance Sheet (B)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Unit Data (Riyal)

Evolution of the Funds Portfolio

Financial Ratios

Share Price

Musharaka REIT Fund (MUSHARAKA REIT)

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