Al Mashaar REIT accepts tenant’s rent deferral request from March 15 to June 30

Muscat Capital Co. approved a request from Eskan Development and Investment Co., a tenant of Al Mashaar REIT Fund’s properties, to defer rent payment for the period from March 15 to June 30, 2020.

The fund manager said in a bourse statement that the rent will be paid, after evaluation by the end of June.

An agreement was reached with the tenant to pay the due rent for the period from Jan 1 to March 14, 2020, amounting to SAR 7.73 million plus a 5% VAT of SAR 386,300, totaling SAR 8.11 million.

The rent deferral is applicable only for the current tenancy contract signed between Al Mashaar REIT and Eskan Development and Investment Co., covering 3 towers, the statement said, noting that the contract is ongoing with all clauses effective.

Muscat Capital expects these developments will result in lower rental returns, which, in turn, will have a negative impact on the fund’s Q2 performance and dividends.

According to data compiled by Argaam, Muscat Capital received on April 7, a notification from Eskan Development and Investment Co., requesting to waive rents due from March 1, 2020.

The request came on the back of impacted rent returns affected by the precautionary measures issued by the relevant government authorities to combat coronavirus outbreak.