Al Mashaar REIT posts FFO of SAR 7.43 mln in H1 2020

Al Mashaar REIT Fund posted a net profit of SAR 4.16 million (SAR 0.07 per unit) in H1 2020, compared to a net profit of SAR 12.08 million a year earlier, the fund manager Muscat Capital said in a statement to Tadawul.

Funds from operations (FFO) reached SAR 7.43 million in H1 2020, dropping over 52% from SAR 15.43 million in year-earlier period.

 *No rental income for Q2 2020

The fund’s results were hit by recording zero rental income for Q2 2020, due to the deferment of due rentals amid the coronavirus outbreak.

The H1 2020 financial results included operating expenses of SAR 1.93 million and depreciation expenses of SAR 3.44 million.

The fund added that it agreed with the tenant on paying the due rent of SAR 8.11 million (including a 5% VAT) for the period from Jan. 1 to March 14, 2020.

Al-Mashaar REIT approved a request from the tenant to defer rent payment for the period from March 15 to June 30, 2020. The rent will be paid, after evaluation by the end of June.

Apart from the exception granted to the tenant from March 15 to June 30, the existing lease agreements between the fund and the tenant, Eskan Development and Investment Co., on the three towers are deemed fully effective, including obligations to parties.