Al-Aqar Healthcare REITXKLS:5116 +0.85%70 Interest Coverage is 2.40 as of Mar. 2026, which is 19% below its 10-year median of 2.95. GuruFocus rates XKLS:5116 with a GF Score™ of 70/100 and a GF Value™ of RM1.31 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 702 REITs companies, Al-Aqar Healthcare REIT ranks worse than 59.83% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Al-Aqar Healthcare REIT's
Operating Income
for the
three
months ended in Mar. 2026 was RM28.4 Mil. Al-Aqar Healthcare REIT's Interest Expense for the
three
months ended in Mar. 2026 was RM-11.9 Mil.
Al-Aqar Healthcare REIT's interest coverage for the quarter that ended in Mar. 2026 was 2.40.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Al-Aqar Healthcare REIT interest coverage is 2.46, which is low.
The historical rank and industry rank for Al-Aqar Healthcare REIT's Interest Coverage or its related term are showing as below:
XKLS:5116'
s Interest Coverage Range Over the Past 10 Years
Min: 2.46 Med: 2.95 Max: 3.78
Current: 2.46
XKLS:5116's Interest Coverage is ranked worse than 59.83% of 702
companies
in the REITs industry
Industry Median: 3.125
vs XKLS:5116: 2.46
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Al-Aqar Healthcare REIT Interest Coverage Related Terms
Al-Aqar Healthcare REIT Interest Coverage Historical Data
* Premium members only.
The historical data trend for Al-Aqar Healthcare REIT's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XKLS:5116 vs WELL, VTR, OHI: Interest Coverage Comparison
For the REIT - Healthcare Facilities subindustry, Al-Aqar Healthcare REIT's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Al-Aqar Healthcare REIT Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Al-Aqar Healthcare REIT's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Al-Aqar Healthcare REIT's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Al-Aqar Healthcare REIT (XKLS:5116) has a Interest Coverage of 2.40 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Al-Aqar Healthcare REIT and its competitors. This is 19% below median its historical median of 2.95. Over the past decade, Al-Aqar Healthcare REIT's Interest Coverage has ranged from 2.46 to 3.78. According to the industry distribution chart, Al-Aqar Healthcare REIT ranks #420 out of 702 companies in the REITs industry, placing it in the top 59.8%.
Is Al-Aqar Healthcare REIT's Interest Coverage too high?
Al-Aqar Healthcare REIT's current Interest Coverage of 2.40 is 19% below median its 10-year median of 2.95. Over the past 10 years, this metric has ranged from a low of 2.46 to a high of 3.78. The REITs industry median Interest Coverage is 3.13. Al-Aqar Healthcare REIT's value of 2.40 is 23.2% below this industry median. Based on the distribution chart, Al-Aqar Healthcare REIT ranks #420 out of 702 companies in the REITs industry, which is below the industry midpoint. Overall, Al-Aqar Healthcare REIT has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Al-Aqar Healthcare REIT's Interest Coverage compare to WELL and VTR?
According to the REITs industry distribution chart, Al-Aqar Healthcare REIT ranks #420 out of 702 companies for Interest Coverage. This places Al-Aqar Healthcare REIT in the lower half of its industry. The industry median Interest Coverage is 3.13. Al-Aqar Healthcare REIT's value of 2.40 is 23.2% below this benchmark. Historically, Al-Aqar Healthcare REIT's own Interest Coverage has ranged from 2.46 to 3.78 over the past decade. While the company's 10-year median is 2.95 vs. the industry median of 3.13, Al-Aqar Healthcare REIT has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.13, based on 702 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Al-Aqar Healthcare REIT's current Interest Coverage of 2.40 is 23.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Al-Aqar Healthcare REIT and its competitors. For the REITs industry, the median Interest Coverage is 3.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al-Aqar Healthcare REIT's current Interest Coverage is 2.40, which is 19% below median its own 10-year median of 2.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Aqar Healthcare REIT stock overvalued right now?
Based on GuruFocus' analysis, Al-Aqar Healthcare REIT (XKLS:5116) is currently considered Modestly Undervalued. The stock's GF Value™ is RM1.31, compared to a current price of RM1.18 — trading 9.9% below its estimated fair value. The current Interest Coverage is 2.40, which is 19% below median its 10-year median of 2.95 and 23.2% below the REITs industry median of 3.13. Al-Aqar Healthcare REIT's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Al-Aqar Healthcare REIT (XKLS:5116), the current Interest Coverage is 2.40 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Al-Aqar Healthcare REIT (XKLS:5116) Overvalued in 2026?
Based on GuruFocus' analysis, Al-Aqar Healthcare REIT stock appears to be undervalued.
The current stock price of RM1.18 is trading 9.9% below its estimated GF Value™ of RM1.31.
GuruFocus considers Al-Aqar Healthcare REIT to be Modestly Undervalued.
Key valuation signals for XKLS:5116:
Interest Coverage: 2.40 (19% below median its 10-year median of 2.95)
GF Value™: RM1.31 vs. price of RM1.18 (9.9% below fair value)
Industry Position: 23.2% below the REITs median (#420 of 702)
No single metric tells the full story. See the XKLS:5116 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al-Aqar Healthcare REIT is engaged in investing in Syariah-compliant properties with the primary objective of providing unitholders with distribution and potential for the sustainable long-term growth of such distribution and capital appreciation. The company operates in Malaysia and Australia. The Malaysian geographic segment generates the maximum revenue for the company.
70GF Score
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