Al-Aqar Healthcare REIT (XKLS:5116) Financial Strength: 1 (As of Jun. 2026) — 67% Below Median

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XKLS:5116 Al-Aqar Healthcare REIT XKLS:5116
71 GF Score
Price RM1.16
GF Value RM1.35
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Al-Aqar Healthcare REIT Financial Strength?

Al-Aqar Healthcare REIT XKLS:5116 71 Financial Strength is 1 as of Jun. 2026, which is 67% below its 10-year median of 3.00. GuruFocus rates XKLS:5116 with a GF Score™ of 71/100 and a GF Value™ of RM1.35 (Modestly Undervalued). The stock has 6 warning signs investors should review.

Al-Aqar Healthcare REIT has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Al-Aqar Healthcare REIT displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Al-Aqar Healthcare REIT's Interest Coverage for the quarter that ended in Jun. 2026 was 2.21. Al-Aqar Healthcare REIT's debt to revenue ratio for the quarter that ended in Jun. 2026 was 7.48. As of today, Al-Aqar Healthcare REIT's Altman Z-Score is 0.68.


Al-Aqar Healthcare REIT  (XKLS:5116) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Al-Aqar Healthcare REIT has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Al-Aqar Healthcare REIT Financial Strength Related Terms


XKLS:5116 vs WELL, VTR, DOC: Financial Strength Comparison

For the REIT - Healthcare Facilities subindustry, Al-Aqar Healthcare REIT's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs REITs Industry

For the REITs industry and Real Estate sector, Al-Aqar Healthcare REIT's Financial Strength distribution charts can be found below:

* The bar in red indicates where Al-Aqar Healthcare REIT's Financial Strength falls into.


XKLS:5116
71GF Score
Al-Aqar Healthcare REIT XKLS:5116
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Al-Aqar Healthcare REIT Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Al-Aqar Healthcare REIT's Interest Expense for the months ended in Jun. 2026 was RM-13.0 Mil. Its Operating Income for the months ended in Jun. 2026 was RM28.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was RM370.8 Mil.

Al-Aqar Healthcare REIT's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*28.823474/-13.026
=2.21

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 2.35, which is low.

2. Debt to revenue ratio. The lower, the better.

Al-Aqar Healthcare REIT's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(639.202513 + 370.840432) / 134.961976
=7.48

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Al-Aqar Healthcare REIT has a Z-score of 0.68, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.68 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 1 mean?
Al-Aqar Healthcare REIT (XKLS:5116) has a Financial Strength of 1 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Al-Aqar Healthcare REIT and its competitors. This is 67% below median its historical median of 3.00. Over the past decade, Al-Aqar Healthcare REIT's Financial Strength has ranged from 1.00 to 7.00.
Is Al-Aqar Healthcare REIT's Financial Strength too high?
Al-Aqar Healthcare REIT's current Financial Strength of 1 is 67% below median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 7.00. Overall, Al-Aqar Healthcare REIT has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Al-Aqar Healthcare REIT's Financial Strength compare to WELL and VTR?
Al-Aqar Healthcare REIT's Financial Strength of 1 can be compared against companies in the REITs industry. Historically, Al-Aqar Healthcare REIT's own Financial Strength has ranged from 1.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a REITs company?
A good Financial Strength depends on the REITs industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Al-Aqar Healthcare REIT and its competitors. Al-Aqar Healthcare REIT's current Financial Strength is 1, which is 67% below median its own 10-year median of 3.00. 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 RM1.35, compared to a current price of RM1.16 — trading 14.1% below its estimated fair value. The current Financial Strength is 1, which is 67% below median its 10-year median of 3.00. Al-Aqar Healthcare REIT's overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Al-Aqar Healthcare REIT (XKLS:5116), the current Financial Strength is 1 as of Jun. 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 RM1.16 is trading 14.1% below its estimated GF Value™ of RM1.35. GuruFocus considers Al-Aqar Healthcare REIT to be Modestly Undervalued.

Key valuation signals for XKLS:5116:

  • Financial Strength: 1 (67% below median its 10-year median of 3.00)
  • GF Value™: RM1.35 vs. price of RM1.16 (14.1% below fair value)
  • GF Score™: 71/100 with 6 warning signs

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 Business Description

Industry Real EstateREITs
Address Unit 1-19-02, Level 19, Block 1, V SQUARE, Jalan Utara, Petaling Jaya, SGR, MYS, 46200
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.
71GF Score

Get the complete analysis for XKLS:5116

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM1.16
Price
RM1.35
GF Value