Jadwa REIT Saudi receives several rent reduction requests on COVID-19 measures

Jadwa Investment Co., the fund manager of Jadwa REIT Saudi Fund, received several requests from real estate tenants to temporarily reduce due rents during the COVID-19 precautionary measures period.

The company said in a statement to Tadawul that these requests amounted to 8% of total annual revenue as of the latest audited financial statements.

The company is still evaluating these requests on a case-by-case basis and petitions are dealt in accordance with regularity and contractual procedures to protect the interests of unitholders in the short- and long-term.

Some of the requests have not been accepted while the remaining ones are still under review.

The statement also highlighted the fund’s strong financial position, as bank financing does not exceed 8% of the total assets as per the latest audited financial results.

Jadwa added it is difficult to determine the full impact on the fund’s performance, however, it expected a negative impact on the fund distribution in the short-term.

In addition, Jadwa did not expect any impact of the precautionary measures on the fund’s future growth plans as it is continuously monitoring and assessing opportunities to acquire additional income-generating properties.

In order to mitigate the negative impact of the precautionary measures and to preserve liquidity, the fund manager is aiming to benefit from all relevant economic stimulus, including delaying the VAT return filling and postponing some of the fund's expenses in accordance with the established regulatory procedures.

Any further developments will be announced in due course.