AlKhabeer REIT says rent revision requests from 4 tenants account for 38.28% of total annual income

AlKhabeer Capital Co., the fund manager of AlKhabeer REIT Fund, received requests from 4 real estate tenants to either reduce, reschedule or suspend due rents during the COVID-19 precautionary measures period.

The company said in a statement to Tadawul that these requests represent 38.28% of the total annual income.

The company is mainly evaluating the requests of those tenants severely affected by the COVID-19 measures, the statement said, adding that the petitions are dealt in accordance with regularity and contractual procedures to protect the interests of unitholders.

The fund manager expected a negative impact of the precautionary measures on both the fund income and dividends distribution in the short-term due to the inability of some tenants to pay rent under the current circumstances.

It is presently difficult to determine the full impact on the fund’s performance, as there is still uncertainty over the timeframe for COVID-19 precautionary measures, Alkhabeer Cap noted, adding that any further developments will be announced in due course.

According to data compiled by Argaam, Alkhabeer Capital received, on April 8, several requests from real estate tenants to either reduce, reschedule or suspend due rents during the COVID-19 precautionary measures period.