Al Mashaar REIT posts SAR 5.97 mln operating profit in Q1 2020

Al Mashaar REIT Fund posted a net profit of SAR 6.14 million (SAR 0.11/ unit) for the quarter ended March 31, 2020, compared to SAR 6.11 million profit for the same period last year.

Funds from Operations (FFO) reached SAR 5.97 million during the first quarter 2020, down 2% year-on-year from SAR 6.11 million in Q1 last year.

The Q1 2020 quarterly statement included fund expenses of SAR 1.66 million, in addition to depreciation expenses of SAR 1.72 million. It also included other income of SAR 170.3 thousand at the end of the first quarter of 2020.

The quarterly report included management fee accrued for the period between Jan. 1, 2020 to March 31, 2020, despite the letter from tenants requesting to discontinue the rent commencing March 1.

On April 6, the fund manager received a notice from Eskan Development and Investment Company to waive its rental obligation from March 1, 2020.

The fund manager is still reviewing this request and is negotiating with the tenant, while adding that it will announce any developments in due course.

The fund manager expects negative impact on the fund due to these events, but it is currently difficult to determine the full impact on the fund's performance.