الإعلام

Description of the event:

Jadwa Investment Company announces that it has received a number of requests from some tenants of Jadwa REIT Saudi Fund to temporarily reduce due rents until the end of precautionary measures that were implemented to contain the spread of the Coronavirus outbreak (COVID-19) aiming to protect citizens and residents by closing of commercial complexes until further notice in addition to a full curfew. The Fund manager evaluates these requests on a case-by-case basis subject to the regularity and contractual procedures in a manner that protects the interests of the unitholders in the short and long term. Some of these requests have not been accepted while the remaining requests are still under review. The total value of requests under review represents 8% of the fund’s total annual revenue as of the latest audited financial statements.

To mitigate the negative impact of the precautionary measures and to preserve the liquidity of the fund, the fund manager is working on benefiting from all relevant economic stimulus, including, but not limited to, delaying the VAT return filling and postponing some of the fund's expenses in accordance with the established regulatory procedures.

The fund manager expects that these precautionary measures will not have any impact on the fund’s future growth plans as the fund manager is continuously monitoring and assessing opportunities to acquire additional, accretive income-generating properties. It is worth noting that the fund has a strong financial position as bank financing does not exceed 8% of the fund’s total assets according to the latest audited financial statements. Also, the decline in the cost of financing (linked to SAIBOR) will contribute to reducing the severity of the expected negative impact.

The Impact Caused by the Event:

In the absence of a specific period of these precautionary measures by the authorities, and not reaching a final decision regarding the requests submitted by some tenants, it is difficult for the fund to quantify the impact resulting from these measures, but it is expected that these precautionary measures will negatively impact the fund distributions in the short term. The Fund manager will closely monitor the situation and announce any future material developments in due course.

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