Jadwa REIT Al Haramain to distribute available FFO semi-annually

Jadwa REIT Al Haramain Fund plans to distribute all available Funds From Operations (FFO) to its unit holders on a semi-annual basis after accounting for the fund’s short-term obligations, it said in a statement to Tadawul Monday.

The new dividend policy aims to give clarity to existing and prospective unit holders on expected income generation.

This policy may change in the future if any significant change occurs in the fund's strategy or any major investment plan calls for retaining cash. Also, if any change in laws, rules and regulations would demand an altered dividend policy.

The financial impact of the new dividend policy along with the long-term lease contracts signed by Jadwa REIT Al Haramain Fund for its two existing portfolio properties is expected to translate into a half yearly dividend of SAR 0.26 per unit, the statement said.

This does not take into account any acquisition that the fund may finance through its recently acquired debt facility of SAR 500 million, which was announced on July 24, or any potential capital raise.

The fund, however, plans to increase the dividend if the FFO increases as a result of new property acquisitions or an increase in income.