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Grit Real Estate Income Group Limited (GB:GR1T)
LSE: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)

Rating:52Neutral
Price Target:
7.00p
▲(9900.00%Upside)
Grit Real Estate faces significant financial challenges with high leverage and negative net income, which weigh heavily on its stock score. The technical analysis suggests a bearish trend. However, the company's strategic initiatives, including expansion and cost-saving partnerships, provide a positive outlook for future stability and growth. A high dividend yield offers some appeal despite a negative P/E ratio.

Grit Real Estate Income Group Limited (GR1T) vs. iShares MSCI United Kingdom ETF (EWC)

Grit Real Estate Income Group Limited Business Overview & Revenue Model

Company DescriptionGrit Real Estate Income Group Limited (GR1T) is a leading real estate income group focused on investing in and managing a diversified portfolio of properties across African markets. The company primarily operates in the commercial real estate sector, with investments spanning retail, office, hospitality, and industrial properties. GR1T aims to deliver strong income and capital growth for its shareholders through strategic property acquisitions and active asset management.
How the Company Makes MoneyGrit 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
40
Negative
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
50
Neutral
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
60
Neutral
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue76.90M63.98M56.25M51.94M49.22M48.53M
Gross Profit76.90M51.61M46.63M43.28M40.67M39.55M
EBITDA0.00-38.62M18.27M40.97M-38.55M-30.46M
Net Income-90.83M-84.50M-23.63M10.44M-51.93M-63.12M
Balance Sheet
Total Assets1.02B1.05B907.69M937.22M810.71M845.70M
Cash, Cash Equivalents and Short-Term Investments16.14M18.77M9.21M26.00M4.89M3.58M
Total Debt398.49M540.85M459.50M456.25M432.44M448.56M
Total Liabilities687.63M697.08M574.07M567.84M532.30M548.43M
Stockholders Equity222.20M254.71M359.07M391.60M296.34M297.88M
Cash Flow
Free Cash Flow52.43M19.89M32.26M11.18M19.70M10.93M
Operating Cash Flow52.43M20.38M32.55M11.29M19.89M11.66M
Investing Cash Flow-7.09M-7.31M26.91M-52.85M-1.53M-5.45M
Financing Cash Flow-35.00M-3.48M-75.05M63.78M-9.92M-17.95M

Grit Real Estate Income Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.07
Price Trends
50DMA
0.07
Positive
100DMA
0.08
Negative
200DMA
0.09
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
0.05
Positive
STOCH
77.27
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 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 0.05 is Positive, neither overbought nor oversold. The STOCH value of 77.27 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
£26.23M25.493.49%0.94%-1.79%-10.25%
GBPNS
67
Neutral
£50.33M7.555.86%413.79%2.20%51.62%
66
Neutral
£962.26M14.542.04%234.64%11.04%38.13%
GBFPO
58
Neutral
£22.55M0.095.09%-3.81%
52
Neutral
£35.49M-37.17%16.91%25.50%-91.61%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GR1T
Grit Real Estate Income Group Limited
0.07
-0.09
-56.25%
GB:PNS
Panther Securities
2.85
-0.12
-4.04%
GB:CDFF
The Cardiff Property
26.00
3.22
14.14%
GB:FPO
First Property
0.15
-0.01
-6.25%

Grit Real Estate Income Group Limited Corporate Events

Business Operations and Strategy
Grit Real Estate Expands with Africa’s Largest Embassy Accommodation Platform
Positive
Jun 18, 2025

Grit Real Estate Income Group Limited has announced the establishment of the largest embassy accommodation platform in Africa, a strategic move that aligns with its focus on impact-driven real estate. Despite macro-economic challenges, the company is advancing its strategic priorities, including asset disposals and a partnership with Broll Property Group to streamline operations and reduce costs. The company is also focused on reducing debt and optimizing costs, with a disposal strategy for non-core assets to improve financial stability. The partnership with Broll is expected to save approximately US$1 million annually, enhancing operational efficiencies.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 19, 2025