Musharaka REIT’s properties occupancy rate, market value improve by Q2-end

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Musharaka REIT Fund’s properties average occupancy rates recovered to reach 93% during the second quarter of 2023, thanks to improved occupancy rates for five properties compared to the previous quarter, the results of the latest financial statements of the fund indicated.

These increases in occupancy rates came in the residential, commercial and hospitality segments, most notably in Seashore Residential Complex property, as the occupancy rate increased to 63% in Q2 2023 from 54% in Q1 2023. Ajzala Residential Complex followed, surging by 7% to 84% by the end of Q2.

On the other hand, occupancy rates for Al Faisaliah Plaza and Pearl Residential Complex declined to 95% and 89%, respectively. Meanwhile, occupancy rates for the rest of the properties remained steady.

The following table shows occupancy rates for the fund's properties since the Q1 2022:

As a result, the fund's average occupancy rate gradually recovered for the second consecutive quarter, rising by 2% since the beginning of the year. Still, this was below the average of the same quarter last year which came at 99%, driven by the full leasing of Al Baraka Warehouse properties in Q2 2022.

Meanwhile, the fund's occupancy rates tumbled starting from Q3 2022 until the end of 2022 due to the decline in occupancy of all properties in the residential and hospitality segments.

The fund owns a real estate portfolio of 10 properties, in addition to the usufruct of three properties, most of which are located in Al Khobar with 53% and four properties. Meanwhile, Riyadh followed with 36% and five properties.

Most of the fund's real estate investments came in the residential sector with an acquisition rate of 47%, followed by the commercial sector with 31%.

According to available data, the market capitalization of real estate reached SAR 1.47 billion by the end of 2022, up 18% year-on-year (YoY), but decreased by 2% compared to the first half of 2022.