Musharaka REIT expects to pay semi-annual dividend at 90%

Musharaka Capital’s REIT is expected to pay a semi-annual dividend at not less than 90 percent of profit, CNBC Arabia has reported, citing Musharaka Capital chief executive, Ibrahim Al Assaf.

Musharaka REIT may later pay dividend on a quarterly basis, he stated, adding that the fund is planning to invest a 25 percent of its assets abroad.

The REIT, which is valued at SAR 880 million, invests in yield-generating properties in the residential, industrial, as well as hospitality fields. Also, the raised funds will be directed to purchase fully-developed properties.

The Saudi Capital Market Authority (CMA) on Monday approved Musharaka Capital’s request to offer and list units of its Real Estate Investment Traded Fund (REIT) on the Saudi Stock Exchange (Tadawul).

Last month, the CMA approved Osool & Bakheet Investment Co.’s request to offer, register, and list units of the AlMa'athar REIT on the Saudi bourse.

Five other REITs have been listed on Tadawul so far: Riyad REIT; Aljazira Mawten REIT; Jadwa REIT Al-Haramain Fund; Taleem REIT; and AlMa'athar REIT.

Tadawul started listing REITs last year in a move aimed at enhancing transparency in the property sector and easing the Kingdom’s housing shortage. 

The new funds will allow investors to access the local real estate market through purchasing existing, developed property.