Al Mashaar REIT posts SAR 2 mln FFO loss, SAR 40.1 mln net loss in Q4 2020

Al Mashaar REIT Fund incurred a net loss of SAR 40.1 mln (SAR -0.70/unit) for Q4 2020 against a net profit of SAR 6.2 million a year earlier, Muscat Capital, the fund manager, said in a bourse statement on Wednesday.

Losses from funds from operations (FFO) reached SAR 2.1 million during the three-month period, compared to a net profit of SAR 7.8 million in Q4 2019.

*No rental income for Q4 2020

The weak performance was attributed to reporting zero rental income in Q4 2020, as the fund did not collect any rental income as of March-end 2020, due to the COVID-19 pandemic outbreak.

The fourth-quarter figures included losses from reassessment of real estate investments worth SAR 38.1 million in Q4 2020, compared to null in year-earlier period.

Moreover, asset depreciation costs remained unchanged at SAR 1.7 million, when compared to Q4 2019.  Operating expenses stood at SAR 317,000, down from SAR 2 million in Q4 2019.