Bonyan REIT distributes 1.23% cash dividend for period from Nov. 1, 2019 to April 30, 2020

Saudi Fransi Capital announced the distribution of 1.228% cash dividend to Bonyan REIT Fund unit holders for the period starting Nov. 1, 2019 to April 30, 2020, at SAR 0.1228 per unit, amounting to SAR 20.001 million, according to a bourse statement.

The dividend represents 1.21% of net assets based on the fair market value as of Dec. 31, 2019, the fund manager added.

The fund manager added that it intends to provide a comprehensive update on fund’s operations (including impact of COVID-19 related precautionary measures) as follows:

- As of April 30, 2020, the fund’s total cash balance was SAR 59.1 million. Projected cash collections from the fund’s residential segment are expected to remain largely unaffected.

However, the commercial and hospitality segments (i.e. malls and hotels) are expected to face challenges due to social distancing and travel restrictions.

- The property manager has received requests for rent waivers from the majority of its malls’ tenants. Accordingly, the fund board has decided to support the tenants by offering them support packages addressing their needs.

- Fund’s assets directly impacted due to precautionary measures, such as malls, constituted 69.4% of total gross rental income for FY2019, i.e. 1 month would equate to 5.8% of annual gross rental income

- The property manager has received 9 lease cancellation requests amounting to SAR 1.6 million (representing 0.75% of total gross rental income). These requests are currently being assessed by the fund manager.

- The property manager has made significant headway in cutting operating expenses. April operating expenses were reduced by approximately 46% as compared to monthly average of Q1 2020.

All operating expenses are being monitored and reviewed regularly. The fund manager is also reviewing and rationalizing fund’s projected discretionary capital expenditures.

- The fund will continue to benefit from government support programs such as General Organization for Social Insurance’s SANED subsidy program and GAZT initiatives.

- The fund maintains strong liquidity and the fund will continue to honor its commitment by distributing at least 90% of its annual net income.