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Grit Real Estate Income Group Limited (GB:GR1T)
:GR1T
UK Market

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

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GB

Grit Real Estate Income Group Limited

(LSE:GR1T)

43Neutral
Grit Real Estate Income Group Limited has a low overall stock score, driven primarily by financial challenges and negative technical indicators. While there is revenue growth, profitability issues and increased leverage pose significant risks. Technical analysis suggests bearish momentum, and the valuation is pressured by a negative P/E ratio, albeit somewhat offset by a high dividend yield. The company's commitment to transparency through upcoming earnings announcements is positive, but does not materially alter the stock's weak outlook.

Grit Real Estate Income Group Limited (GR1T) vs. S&P 500 (SPY)

Grit Real Estate Income Group Limited Business Overview & Revenue Model

Company DescriptionGrit Real Estate Income Group Limited (GR1T) is a leading pan-African real estate investment group focused on high-quality income-generating properties. The company invests in a diversified portfolio that spans multiple sectors, including retail, commercial, and industrial real estate, primarily across African countries. Grit's core services involve acquiring, developing, and managing properties that deliver strong returns to investors while fostering economic growth within the regions it operates.
How the Company Makes MoneyGrit Real Estate Income Group Limited generates revenue primarily through rental income from its portfolio of investment properties. The company acquires high-quality assets that provide stable and predictable cash flows through long-term lease agreements with creditworthy tenants. These properties are strategically located in high-growth regions across Africa, allowing Grit to capitalize on economic development and urbanization trends. Additionally, the company may engage in property development and sales activities, which contribute additional revenue streams. Key partnerships with local and international investors, as well as strong relationships with tenants, also play a crucial role in optimizing occupancy rates and rental yields, further enhancing Grit's profitability.

Grit Real Estate Income Group Limited Financial Statement Overview

Summary
Grit Real Estate Income Group Limited shows mixed financial performance. Revenue growth is noted, but profitability remains a challenge with a negative net income margin. The balance sheet reveals increased leverage, raising financial risk concerns. Cash flow generation is positive but declining, necessitating focus on operational efficiencies.
Income Statement
45
Neutral
The company experienced a notable revenue increase of 13.7% from 2023 to 2024. However, the net profit margin remained negative at -132.1% in 2024, indicating persistent profitability challenges. The gross profit margin improved slightly to 80.7%, but the EBITDA margin was negative, reflecting operational inefficiencies.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio increased to 2.12, indicating higher leverage, which could pose risks. The equity ratio decreased to 24.2%, suggesting lower financial stability. Despite these challenges, the balance sheet shows a robust asset base supporting potential future growth.
Cash Flow
55
Neutral
Operating cash flow to net income ratio was -0.24, indicating cash flow challenges relative to earnings. Free cash flow growth was negative as it decreased from 2023 to 2024. Despite this, the company maintained positive free cash flow, which is a positive aspect.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
65.43M63.98M56.25M50.77M49.22M48.53M
Gross Profit
65.43M51.61M46.63M42.11M40.67M38.00M
EBIT
35.98M30.79M20.46M60.34M26.85M19.25M
EBITDA
-78.73M-38.62M18.27M40.97M-74.26M-75.09M
Net Income Common Stockholders
-46.91M-84.50M-23.63M10.44M-61.38M-67.25M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.70M18.77M9.21M26.00M4.89M3.58M
Total Assets
834.24M1.05B907.69M937.22M810.71M845.70M
Total Debt
352.75M540.85M459.50M456.25M432.44M448.56M
Net Debt
347.05M522.08M450.29M430.25M427.55M444.99M
Total Liabilities
416.51M697.08M574.07M567.84M532.30M548.43M
Stockholders Equity
401.07M254.71M359.07M391.60M296.34M297.88M
Cash FlowFree Cash Flow
29.45M19.89M32.26M11.18M19.70M10.93M
Operating Cash Flow
29.45M20.38M32.55M11.29M19.89M11.66M
Investing Cash Flow
-255.00K-7.31M26.91M-52.85M-1.53M-5.45M
Financing Cash Flow
-33.93M-3.48M-75.05M63.78M-9.92M-17.95M

Grit Real Estate Income Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.50
Price Trends
50DMA
9.41
Negative
100DMA
10.01
Negative
200DMA
12.46
Negative
Market Momentum
MACD
-0.33
Negative
RSI
3.87
Positive
STOCH
66.67
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 8.5 is equal to the 20-day moving average (MA) of 8.50, below the 50-day MA of 9.41, and below the 200-day MA of 12.46, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 3.87 is Positive, neither overbought nor oversold. The STOCH value of 66.67 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
£9.43B15.595.18%4.17%-9.88%
65
Neutral
£3.80B20.893.17%5.99%-30.83%
61
Neutral
$4.72B17.64-3.07%10.89%5.99%-21.86%
54
Neutral
£4.18B39.591.61%7.10%-1.73%
50
Neutral
£1.21B-2.09%6.18%6.08%
43
Neutral
£41.00M-37.17%13.93%25.50%-91.61%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GR1T
Grit Real Estate Income Group Limited
8.50
-11.50
-57.50%
GB:LAND
Land Securities Group plc REIT
563.00
-28.58
-4.83%
GB:HMSO
Hammerson plc R.E.I.T.
248.60
-17.30
-6.51%
GB:SGRO
Segro plc (REIT)
657.20
-176.38
-21.16%
GB:BLND
British Land Company plc
359.60
-4.10
-1.13%

Grit Real Estate Income Group Limited Corporate Events

Financial Disclosures
Grit Real Estate Announces Six-Month Financial Results for 2024
Neutral
Feb 14, 2025

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.

Business Operations and StrategyFinancial Disclosures
Grit Real Estate Reports 13% Increase in Net Operating Income Despite Rising Finance Costs
Neutral
Feb 14, 2025

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.

Business Operations and StrategyFinancial Disclosures
Grit Real Estate Income Group to Announce Half-Year Results and Host Investor Presentation
Positive
Feb 10, 2025

Grit Real Estate Income Group Limited announced it will release its half-year results for the period ending December 31, 2024, on February 14, 2025. The company will host a live investor presentation on the same day, welcoming both existing and potential shareholders to participate and pose questions in advance. This announcement underscores Grit’s commitment to transparency and engaging with its investors, which could enhance its market presence and investor confidence.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.