MEFIC REIT incurs book losses in 2020, asset evaluation hit by COVID-19: official

Turki Al-Fozan, Head of Real Estate Investments at MEFIC Capital

MEFIC REIT Fund’s losses in 2020 were mostly “book and non-cash losses”, Turki Al-Fozan, Head of Real Estate Investments at MEFIC Capital, told Argaam in a telephone interview.

These losses were incurred from the evaluation of real estate investments amid the COVID-19 outbreak and lockdowns in Makkah, which in turn weighed negatively on some assets.

The assessments of hotels will rise again, upon a recovery in Makkah markets, Al-Fozan said, expecting a limited impact on cash dividends, backed by the improved performance of other assets owned by the fund.

Moreover, MEFIC REIT management aims to enhance the operations of real estate assets to help them return to pre-COVID levels, so as to achieve the best interest of investors and aggrandize their returns.

Speaking of the fund’s future plans, Al-Fozan said: “All options are available in the coming period to achieve the best interest of investors.”

MEFIC REIT Fund reported a loss of SAR 39.2 million for the fiscal year 2020, compared to a profit of SAR 28 million a year earlier.