Al Rajhi REIT earns SAR109.6M in FFO, SAR 75.6M net profit in 2023
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Al Rajhi REIT Fund reported a net profit of SAR 75.3 million (SAR 0.27 per unit) for 2023, a drop of 33% from SAR 113.4 million a year earlier.
Funds from operations (FFO) decreased by 2% to SAR 109.6 million in 2023, from SAR 111.8 million in 2022.
The fund recorded higher depreciation of investment properties and increased management fees.
Financials (M)
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Rental Income | 158.16 | 192.07 | 21.4 % |
| Funds from Operations(FFO) | 111.83 | 109.64 | (2.0 %) |
| Net Income | 113.41 | 75.55 | (33.4 %) |
| No of shares | 161.86 | 275.61 | 70.3 % |
| Operating EPS (Riyals) | 0.69 | 0.40 | (42.4 %) |
| EPS (Riyals) | 0.70 | 0.27 | (60.9 %) |
The decline in profits was mainly driven by higher consumption of real estate investments, a rise in management fees, and a provision for credit losses totaling SAR 1.5 million, compared to SAR 12.3 million in the year-ago period.
Additionally, increased property management expenses, higher financing costs, and a provision for real estate investments amounting to SAR 5.7 million, compared to a reversal of provision of SAR 29.7 million, further contributed to this downturn.
However, there was an uptick in rental income from real estate investments, along with profits generated from Murabaha transactions totaling SAR 6.6 million, as well as a decrease in other expenses.
Interim Comparasion (M)
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Rental Income | 79.05 | 112.96 | 42.9 % |
| Funds from Operations(FFO) | 47.96 | 77.04 | 60.6 % |
| Net Income | 46.12 | 71.54 | 55.1 % |
| No of shares | 161.86 | 275.61 | 70.3 % |
| Operating EPS (Riyals) | 0.30 | 0.28 | (5.7 %) |
| EPS (Riyals) | 0.28 | 0.26 | (8.9 %) |
Balance Sheet (Million)
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Total Assets | 2,186.58 | 3,136.06 | 43.4 % |
| Total Debt | 896.40 | 896.40 | - |
| Net assets attributable to the Unitholders Item | 1,260.54 | 2,213.74 | 75.6 % |
| Market value of net assets | 1,348.87 | 2,320.83 | 72.1 % |
Net asset value (NAV) reached SAR 2.21 billion as of Dec. 31, 2023, while the net book value per unit reached SAR 8.03.
The market value of assets stood at SAR 2.32 billion by the end of 2023, with a market value per unit of SAR 8.42.
Financial results (Million)
| Period | Rental Income | Change | Funds from Operations(FFO) | Change | Net Income | Change |
|---|---|---|---|---|---|---|
| H1 2023 | 79.11 | 0.0 % | 32.60 | (49.0 %) | 4.01 | (94.0 %) |
| H2 2023 | 112.96 | 42.9 % | 77.04 | 60.6 % | 71.54 | 55.1 % |
| 2023 | 192.07 | 21.4 % | 109.64 | (2.0 %) | 75.55 | (33.4 %) |
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 2023 | 3,132.85 | 43.0 % | 896.40 | 0.0 % | 1,186.86 | (6.4 %) | 1,255.19 | (6.6 %) |
| H2 2023 | 3,136.06 | 43.4 % | 896.40 | 0.0 % | 2,213.74 | 75.6 % | 2,320.83 | 72.1 % |
Multiple Ratios (End of Period Price)
| Period | Price/ Earnings (P/E)(x) | Price/FFO(x) |
|---|---|---|
| Q2 2023 | More than 100 | 33.36 |
| Q4 2023 | 32.40 | 22.32 |
Unit Data (Riyal)
| Period | Operating EPS | EPS | Book Value | Market Value |
|---|---|---|---|---|
| H1 2023 | 0.12 | 0.01 | 4.31 | 4.55 |
| H2 2023 | 0.28 | 0.26 | 8.03 | 8.42 |
| Current | |
| Number of Units (Million) | 275.61 |
| Net Income/Unit ( Riyal) | 0.27 |
| Funds from operations/Unit ( Riyal) | 0.40 |
| P/E (X) (TTM) | 30.24 |
| Current Price/FFO (X) | 20.84 |
| Par Value ( Riyal) | 10.00 |
| Price/book | 1.03 |
| Asset Growth (%) | 43.4 |
| Revenue Growth (%) | 21.4 |
| Net Income Growth (%) | (33.39 ) |
| Adjusted P/E (Last12) (X) | 30.24 |
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