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

• Market Cap: £33.76M
• Dividend Yield: 16.91%
• Average Volume (3M): 46.30K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.36
• Revenue Growth: 25.50%
• EPS Growth: -91.61%
• Country: UK
• Employees: 140
• Sector: Real Estate
• Sector Strength: 77
• Industry: Real Estate - Services
• EPS (TTM): -0.15
• Shares Outstanding: 494,845,550
• 10 Day Avg. Volume: 117,118
• 30 Day Avg. Volume: 46,300
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.58
• Price to Cash Flow (P/CF): 2.10
• P/FCF Ratio: 0.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

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 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 Money

Grit 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
65.43M	63.98M	56.25M	50.77M	49.22M	48.53M
	Gross Profit
65.43M	51.61M	46.63M	42.11M	40.67M	38.00M
	EBIT
35.98M	30.79M	20.46M	60.34M	26.85M	19.25M
	EBITDA
-78.73M	-38.62M	18.27M	40.97M	-74.26M	-75.09M
	Net Income Common Stockholders
-46.91M	-84.50M	-23.63M	10.44M	-61.38M	-67.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.70M	18.77M	9.21M	26.00M	4.89M	3.58M
	Total Assets
834.24M	1.05B	907.69M	937.22M	810.71M	845.70M
	Total Debt
352.75M	540.85M	459.50M	456.25M	432.44M	448.56M
	Net Debt
347.05M	522.08M	450.29M	430.25M	427.55M	444.99M
	Total Liabilities
416.51M	697.08M	574.07M	567.84M	532.30M	548.43M
	Stockholders Equity
401.07M	254.71M	359.07M	391.60M	296.34M	297.88M
Cash Flow		Free Cash Flow
29.45M	19.89M	32.26M	11.18M	19.70M	10.93M
	Operating Cash Flow
29.45M	20.38M	32.55M	11.29M	19.89M	11.66M
	Investing Cash Flow
-255.00K	-7.31M	26.91M	-52.85M	-1.53M	-5.45M
	Financing Cash Flow
-33.93M	-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: Positive
• 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 below the 20-day moving average (MA) of 8.06, below the 50-day MA of 8.74, and below the 200-day MA of 11.79, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 0.43 is Positive, neither overbought nor oversold. The STOCH value of 24.89 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
SGRO	71 Outperform	£9.36B	15.43	5.18%	4.25%	-9.88%	―
DLN	70 Neutral	£2.11B	18.27	3.29%	4.24%	3.70%	―
BLND	68 Neutral	£3.84B	21.09	3.17%	5.93%	-30.83%	―
Sector *	59 Neutral	$2.72B	11.59	0.11%	8770.69%	5.44%	-16.52%
HMSO	51 Neutral	£1.21B	―	-2.09%	6.19%	6.08%	―
LAND	47 Neutral	£4.30B	40.75	1.61%	6.90%	-1.73%	―
GR1T	46 Neutral	£33.76M	―	-37.17%	16.91%	25.50%	-91.61%

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.

Grit Real Estate Income Group to Announce Half-Year Results and Host Investor Presentation

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.