Derayah REIT distributes 0.9% cash dividend for Q2 2020

Derayah Financial announced the distribution of cash dividend to Derayah REIT Fund unit holders for the second quarter of 2020, at SAR 0.09 per unit, or 0.90% initial price per unit, it said in a bourse statement.

The distribution percentage is 0.97% of the net asset value, the statement also added.

The fund manager received additional requests from tenants to partially waive contractual rents as a result of the COVID-19 pandemic, amounting to SAR 24.3 million, or 20.3% of the total annual rent.

Derayah reviewed these requests in accordance with the laws and contractual procedures to protect the interests of unitholders on a commercial basis, the statement noted, adding that it evaluated each request independently to ascertain the loss to the tenants and settled 82.8% of them.

The fund manager further indicated that negotiations are still ongoing for the remaining requests, and it reserves the right to take all regulatory actions deemed appropriate in case no settlement is agreed with the remaining ones.

As a result of the current and expected settlements, Derayah expects improved rental collection levels during the coming period.

Based on the current situation, Derayah does not expect the fund's annual expected rent to decrease by more than 5% or SAR 6 million. 

To preserve the liquidity of the Fund and as a precaution against difficult economic conditions, the fund manager decided to reduce the quarterly cash dividend for Q2 2020 compared to Q1 2020.

Meanwhile, as a precaution, Derayah managed to reschedule the financing profits due on the fund, worth SAR 16 million, to put it on a solid foundation to continue successfully.

However, the fund manager confirmed to continue with the quarterly distributions in the future despite the challenges.