Grit Real Estate Income Group Limited (GR1T) AI Stock Analysis

• Market Cap: £33.78M
• Dividend Yield: 16.91%
• Average Volume (3M): 16.69K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.32
• Revenue Growth: 25.50%
• EPS Growth: -91.61%
• Country: UK
• Employees: 140
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): -0.04
• Shares Outstanding: 495,092,350
• 10 Day Avg. Volume: 9,890
• 30 Day Avg. Volume: 16,689
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.24
• Enterprise Value/Market Cap: 10.93
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -3.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ―

The stock score is primarily impacted by financial instability, with strong operational cash flows overshadowed by high leverage and negative net income. Technical indicators suggest bearish momentum, while the high dividend yield is offset by financial risks.

Grit Real Estate Income Group Limited Business Overview & Revenue Model

Company Description

Grit is listed on the London Stock Exchange main market (LSE: GR1T), the Johannesburg Stock Exchange main board (JSE: GTR) and the Stock Exchange of Mauritius Ltd official market (SEM: DEL.N0000). Grit Real Estate Income Group Limited is a leading pan-African real estate company focused on investing in and actively managing a diversified portfolio of assets in carefully selected African countries (excluding South Africa). By investing in real estate assets across Africa, the Company is building a secure financial future for schools, employees, non-profit organisations, and the like. As such, Grit is unlocking potential across the African continent in an effort to anchor communities and create sustainable jobs. The company's high-quality assets are underpinned by predominantly US$ and Euro denominated long-term leases with a wide range of blue-chip multi-national tenant covenants across a diverse range of robust property sectors. The Company is committed to delivering strong and sustainable income for shareholders, with the potential for income and capital growth. The Company is targeting 8.5%+ p.a. dividend yield in USD and 12.0%+ p.a. NAV total return.

How the Company Makes Money

Grit Real Estate Income Group Limited makes money by acquiring, managing, and leasing out commercial real estate properties across various African countries. The company's revenue model is primarily based on rental income generated from its portfolio of properties, which includes retail centers, office buildings, hotels, and industrial facilities. Additionally, GR1T may engage in property development or redevelopment projects to enhance the value of its assets. The company also focuses on optimizing occupancy rates and rental agreements to maximize income. Strategic partnerships with local developers and financial institutions across its operating regions play a crucial role in securing quality assets and funding growth, thus contributing significantly to its earnings.

Grit Real Estate Income Group Limited Financial Statement Overview

Summary

Grit Real Estate Income Group Limited shows revenue growth but struggles with profitability, indicated by negative net income and high leverage. Strong operational cash flows are overshadowed by significant debt levels and negative shareholder returns, posing long-term financial risks.

Income Statement

The company has shown revenue growth over the TTM, but this is overshadowed by significant negative net income, leading to a negative net profit margin. EBIT margins are relatively healthy, indicating operational efficiency, but the absence of EBITDA due to a lack of depreciation and amortization expenses affects comprehensive profitability analysis.

Balance Sheet

The debt-to-equity ratio is concerning, as the company is heavily leveraged, which poses financial risk. However, the equity ratio is moderate, suggesting some stability in asset financing. Return on equity is negative due to sustained net losses, indicating poor returns for shareholders.

Cash Flow

Operating cash flow is positive and has shown growth, which is a positive sign of the company's ability to generate cash. However, free cash flow growth is inconsistent, and the ratios of operating and free cash flow to net income are skewed due to negative net income figures.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
76.90M	63.98M	56.25M	51.94M	49.22M	48.53M
	Gross Profit
76.90M	51.61M	46.63M	43.28M	40.67M	39.55M
	EBIT
36.81M	30.79M	20.46M	21.12M	19.86M	18.92M
	EBITDA
0.00	-38.62M	18.27M	40.97M	-38.55M	-30.46M
	Net Income Common Stockholders
-90.83M	-84.50M	-23.63M	10.44M	-51.93M	-63.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.14M	18.77M	9.21M	26.00M	4.89M	3.58M
	Total Assets
1.02B	1.05B	907.69M	937.22M	810.71M	845.70M
	Total Debt
398.49M	540.85M	459.50M	456.25M	432.44M	448.56M
	Net Debt
382.35M	522.08M	450.29M	430.25M	427.55M	444.99M
	Total Liabilities
687.63M	697.08M	574.07M	567.84M	532.30M	548.43M
	Stockholders Equity
222.20M	254.71M	359.07M	391.60M	296.34M	297.88M
Cash Flow		Free Cash Flow
52.43M	19.89M	32.26M	11.18M	19.70M	10.93M
	Operating Cash Flow
52.43M	20.38M	32.55M	11.29M	19.89M	11.66M
	Investing Cash Flow
-7.09M	-7.31M	26.91M	-52.85M	-1.53M	-5.45M
	Financing Cash Flow
-35.00M	-3.48M	-75.05M	63.78M	-9.92M	-17.95M

Grit Real Estate Income Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GR1T, the sentiment is Negative. The current price of 7 is equal to the 20-day moving average (MA) of 7.00, below the 50-day MA of 7.33, and below the 200-day MA of 10.22, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 0.43 is Positive, neither overbought nor oversold. The STOCH value of 51.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GR1T.

Grit Real Estate Income Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDFF	69 Neutral	£26.31M	25.49	3.49%	0.94%	-1.79%	-10.25%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
FPO	50 Neutral	£18.85M	―	-5.74%	―	11.29%	-80.81%
GR1T	46 Neutral	£33.78M	―	-37.17%	16.91%	25.50%	-91.61%
DCI		£43.42M	13.55	-15.78%	―	―	―
WINK		£26.08M	14.71	26.28%	6.53%	―	―
PNS		£52.11M	7.81	5.86%	4.00%	―	―

Grit Real Estate Income Group Limited Corporate Events

Grit Real Estate Announces Six-Month Financial Results for 2024

Grit Real Estate Income Group Limited has released its abridged unaudited consolidated results for the six months ending 31 December 2024. The publication of these results demonstrates the company’s continued commitment to transparency and financial accountability, which is crucial for maintaining stakeholder trust and supporting its market position in the pan-African real estate industry.

Grit Real Estate Reports 13% Increase in Net Operating Income Despite Rising Finance Costs

Grit Real Estate Income Group Limited reported a 13% increase in property portfolio net operating income for the six months ending December 2024, driven by contributions from data centers and healthcare segments. The company’s strategic focus on cost reduction and active portfolio management has strengthened its balance sheet, despite an increase in net finance costs due to higher borrowing levels. The company’s efforts in asset management have resulted in a defensive portfolio with significant income from long-term hard currency leases, providing a resilient foundation for future growth opportunities. However, the period also saw a decrease in the EPRA net reinstatement value per share and an increase in administrative costs, reflecting ongoing adjustments and strategic initiatives.