Daily Brief Financials: ProCredit Financing Corp, Block , Regional REIT Ltd and more

• In the Philippines, a staggering 99.5% of all businesses are SMEs.
• As of last year, 67% of local SMEs grappled with credit constraints – a lot of business owners found the friction that comes with traditional bank loans too much of a hassle.
• One startup looking to solve this issue is ProCredit, a Filipino lending firm that engages business owners with its senior decision-makers from the get-go.

• Block has shown considerable growth in gross profit with an impressive 25% increase year over year, largely driven by the strong performance of its Cash App.
• Adjusted EBITDA was up by 81% compared to previous year, proving positive focus on efficiency and profitability.
• The execution of its investment framework and consistent progress towards achieving its Rule of 40 target in 2026, were also remarkable.

Regional REIT (RGL) has declared an unchanged Q423 DPS of 1.2p per share and is making good progress with asset sales. However, with H223 property valuations following the market lower, and a subsequent further increase in the loan to value ratio (LTV), investors are focused on RGL’s refinancing plans, particularly the near maturity of its unsecured bonds. The company is considering a range of options, explored in this note, which likely include an equity raise. By removing uncertainty, an equity raise has the potential to materially improve the share rating.