Al Rajhi REIT receives rent revision requests amounting to SAR 9 mln on COVID-19 measures

Al Rajhi Capital, the fund manager of Al Rajhi REIT, said today that the total value of potential discounts requested by tenants till date amounted to SAR 9 million, or 5.5% of total rents of the fund.

The requests, amounting to SAR 3.1 million (1.9 % of total rent), are directly impacted by the current situation and can be potentially acceptable claims. Currently, these are under review.

However, requests, totaling SAR 5.9 million (3.6% of total rent), are not directly related to COVID-19 measures and are being evaluated on a case-by-case basis. These requests can be potentially rejected, the statement noted.

Further revisions in the above numbers are likely since the government’s precautionary measures are in place. The fund manager will submit its evaluations to the fund board once the COVID-19 measures are removed.

Al Rajhi Capital expects a negative short-term impact on the fund’s business. On the other hand, the decline in SAIBOR has lowered the cost of loan servicing, contributing positively to the fund’s financial performance.

The fund manager is monitoring the situation closely, and any material developments will be announced in due course.

On April 12, Al Rajhi Capital said it had received several requests from real estate tenants to either reduce, reschedule or suspend due rents during the COVID-19 precautionary measures period.