Al Rajhi REIT posts SAR 42.16 mln rental income in Q3 2020

Al Rajhi REIT Fund reported SAR 42.16 million rental income in Q3 2020, the fund’s quarterly statement showed.

Total debt stood at SAR 791.25 million in the three-month period.

In the third quarter, Rawaj Real Estate Co., the master lessee of Blue Tower Building, AlKhobar and Luluah Warehouse, Riyadh has withdrawn its notice of termination for lease contract of these properties. The master lessee of the above properties has agreed to follow the provisions of the lease agreement signed by both parties that includes rent review process

The fund manager announced a change in the Al-Rajhi REIT Fund board, due to appointing Saoud Abdulghani Sulaymani, as independent board member as of Aug. 23, 2020.

The fund manager has also received a letter from Fouzan Trading and General Contracting Co., the master lessee of Narjees Plaza, Anwar Plaza and Rama Plaza, stating that it is proceeding to court for either rent free period or rent reduction, due to extra-ordinary circumstances that prevent them from benefiting fully from the lease agreements.

Currently Narjees Plaza, Anwar Plaza and Rama Plaza are leased to Fouzan Trading and General Contracting Company on triple net basis at combined annual rent. These assets together contribute 8.7% to the fund’s total revenue. The fund manager is ascertaining the validity of this letter and will take all possible actions to protect the interest of unit holders.