Al-Maather REIT receives rent revision requests on COVID-19 measures

Osool and Bakheet Investment Co., fund manager of Al-Maather REIT Fund, received some requests from real estate tenants to either reduce, reschedule or suspend due rents during the COVID-19 precautionary measures period.

The fund manager said in a statement to Tadawul that these requests amounted to less than 5% of total annual rents, and added that the relevant financial impact cannot be determined at present.

The fund manager however expected a potential impact on the fund’s performance and on its balance sheet, if more rent revision requests are made in the future.

The company will continue to evaluate the impact and added that the petitions are dealt in accordance with regularity and contractual procedures to protect the interests of unitholders on a commercial basis.

Al-Maather Fund has more than 200 tenants and the fund has no exposure to any anchor tenant whose annual rental value constitutes more than 14% of the total revenue of the fund.