ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Al Aziziah REIT Fund's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 1.86%.
As of today (2026-07-12), Al Aziziah REIT Fund's WACC % is 9.49%. Al Aziziah REIT Fund's ROIC % is 1.29% (calculated using TTM income statement data).
Al Aziziah REIT Fund earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Al Aziziah REIT Fund (SAU:4337) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Al Aziziah REIT Fund's WACC % is 9.49%. Al Aziziah REIT Fund's ROIC % is 1.29% (calculated using TTM income statement data).
Al Aziziah REIT Fund earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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.
For the REIT - Diversified subindustry, Al Aziziah REIT Fund's ROIC %, along with its competitors' market caps and ROIC % 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 Aziziah REIT Fund ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, Al Aziziah REIT Fund's ROIC % distribution charts can be found below:
* The bar in red indicates where Al Aziziah REIT Fund's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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 Aziziah REIT Fund (SAU:4337) has a ROIC % of 1.86% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Al Aziziah REIT Fund and its competitors.
Is Al Aziziah REIT Fund's ROIC % too high?
Al Aziziah REIT Fund's current ROIC % is 1.86%. The REITs industry median ROIC % is 3.75. Al Aziziah REIT Fund's value of 1.86% is 50.3% below this industry median. Overall, Al Aziziah REIT Fund has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Al Aziziah REIT Fund's ROIC % compare to VICI and WPC?
Al Aziziah REIT Fund's ROIC % of 1.86% can be compared against companies in the REITs industry. The industry median ROIC % is 3.75. Al Aziziah REIT Fund's value of 1.86% is 50.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a REITs company?
The median ROIC % among REITs companies is 3.75, based on 742 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Al Aziziah REIT Fund's current ROIC % of 1.86% is 50.3% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Al Aziziah REIT Fund and its competitors. For the REITs industry, the median ROIC % is 3.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Aziziah REIT Fund's current ROIC % is 1.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Aziziah REIT Fund stock overvalued right now?
Al Aziziah REIT Fund (SAU:4337) has a current ROIC % of 1.86%. The current ROIC % is 1.86% and 50.3% below the REITs industry median of 3.75. Al Aziziah REIT Fund's overall GF Score™ is 11/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Al Aziziah REIT Fund (SAU:4337), the current ROIC % is 1.86% as of Dec. 2025. 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.
Al Aziziah REIT Fund is a closed-ended Sharia-compliant real estate investment traded fund. Its objective is to provide regular income to investors through investment in income-generating real estate assets. A substantial part of the total value of the Fund's assets comes from its investments in developed income-generating real estate assets within the Kingdom of Saudi Arabia. The Fund's portfolio mainly consists of hospitality and office real estate assets.
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