Saudi Fransi Cap says COVID-19 measures to negatively impact Bonyan REIT’s operations

Saudi Fransi Capital, the fund manager for Bonyan REIT Fund, said that the government’s precautionary measures to contain the spread of the COVID-19 outbreak will have a negative impact on the operations and financial performance of the fund in the near term.

The company said in a bourse statement that the fund’s malls, representing 69% of revenues as per FY2019 financial results, remain temporarily closed.

The fund manager further added that all its real estate assets are going through regular deep cleansing and sanitization, and the staff are strictly following the rules and regulations in regards to the curfew instituted by the authorities to curb the spread of COVID-19.

Saudi Fransi Capital is also negotiating the tenants’ requirements and requests for rent waiver or reconsideration of payment terms, to reach a mutual agreement.

The firm adopted cost cutting measures in line with the suspension of day-to-day operations of the malls, as well as reduced mobility and travel restrictions which affected the hospitality industry.

It is presently difficult to determine the impact of the precautionary measures on the fund’s performance, and any developments will be disclosed in due course.