Taleem REIT postpones annual rent increase for 2021 contracts

Logo of Taleem REIT Fund

Saudi Fransi Capital, the fund manager of Taleem REIT Fund, announced the results of the study conducted by the independent financial advisor appointed to assess the impact caused by COVID-19 on the fund’s tenants. 

In a bourse statement, the fund manager said that the board agreed to postpone the annual rent increase for Taleem’s 2021 contracts for one year, provided that the increase will take effect starting from 2022. 

Due to the preventive measures taken to curb the spread of the pandemic, the financial and operational performance of schools declined. 

Accordingly, the financial advisor suggested that the fund should extend the support to its evaluated properties in order to preserve the long-term and strategic interests with the tenants. 

The value of the discounts offered to the evaluated schools represents 10.3% of the total rental income for the fiscal year. 

The board agreed on the study results and based on the recommendation, the above-mentioned discounts will be granted to schools for 2021.