Musharaka REIT expects to pay 7% cash dividend annually

Musharaka REIT said that based on its current lease contracts, it expects to pay 3.5 percent (SAR 0.35 per share) semi-annual cash dividends to unit holders or 7 percent (SAR 0.7 per share) every year.

The primary investment objective of Musharaka REIT is to generate a periodic income through investing in developed and investable real estate assets that are expected to generate periodic rental income in the future, the fund said in a bourse statement.

The REIT plans to distribute the available net profit from its operations in cash to the unitholders on a semi-annual basis.

This dividend policy, however, may change in future due to different factors including but not limited to: any significant change in the fund investment plan that requires the fund to retain cash, any major change in the fund's strategy or any change in implementing laws, rules and regulations that may require a change in policy, the fund added.

The statement also noted that this does not take into account any acquisition that the fund may finance through debt facility in the future.

“However, the fund manager seeks to increase the annual dividends if the fund's annual net profit increases as a result of acquisition of new properties or improvement of income from existing properties,” the statement added.