PBR Rating Agency Evaluates Société de Promotion Immobilière GLOULOU (SPIG)
The PBR Rating agency, at the request of the banking sector, conducted an evaluation of the Société de Promotion Immobilière GLOULOU (SPIG) to provide a financial rating, enabling the company to align with current regulatory standards. This analysis assessed the company's solvability and overall financial management quality.
Evaluation Results
Following the evaluation, PBR Rating agency assigned a rating of BBB+ (TUN) with a stable outlook to SPIG, on a scale ranging from D to AAA. This rating reflects the company's strategic positioning in the Tunisian real estate market, with a business model based on independence and financial autonomy.
Revenue Structure
SPIG's revenues are largely dominated by residential sales, followed by land sales and commercial building sales, which generate a marginal share in the last closed fiscal year.
Growth Trend
PBR Rating agency observed an upward trend and double-digit growth in the company's revenues from 2018 to 2023. A slowdown was noted in 2024, which is expected to continue in 2025, before a expected recovery in the following fiscal year, considering the company's project planning.
Competitive Advantages
Although SPIG operates in a sector facing structural challenges, exacerbated by unfavorable socioeconomic factors, the rating mission highlights the importance of its reputation in the Tunisian real estate market, as well as its numerous competitive advantages, including:
- Strategic land ownership acquired in the past
- Project management mode
- Diversification and differentiation efforts
Future Outlook
For the upcoming period, SPIG is capitalizing on the diversification of its product offerings, a strategic challenge aimed at mitigating sectoral risks while stimulating growth through the expansion of its customer base.
Balance Sheet Structure
Regarding the company's balance sheet structure, PBR Rating agency judges that the equity, although on a favorable dynamic, will need to be strengthened in the coming fiscal years to face commercial and technical challenges. The mission also notes a significant dependence on debt (structural to the sector) and a solvency ratio to be consolidated.
Profitability
The profitability of a real estate developer depends on several key factors, including:
- Control of construction costs
- Adaptation of the offer to the market
- Optimized financial structuring A good management of these levers ensures the economic viability of projects. For SPIG, the analysis shows an upward trend in the main profitability indicators between 2018 and 2023 (excluding 2020, affected by the COVID-19 crisis), marked by a 17% increase in Net Result between 2022 and 2023, mainly due to controlled financial expense management.
Expected Performance
For 2024 and 2025, a decline in profitability aggregates is expected, with a expected recovery in 2026, with several promising projects.
Conclusion
SPIG remains a major player in the Tunisian construction sector, distinguished by its operational efficiency, commitment to service quality, and anticipation of future opportunities. Furthermore, strengthening the balance sheet structure, optimizing the BFR, and consolidating equity appear as necessary levers to improve the company's financial situation in the medium term.
*The local currency rating is not capped by the sovereign rating (in foreign currency).
