Arab News, Tuesday, Mar 23, 2021 | Shaaban 9, 1442
Al Rajhi REIT Fund profit falls amid pandemic property slump
Saudi Arabia:
Saudi Arabia’s Al Rajhi REIT Fund said profit fell 78 percent to SR12.5 million
($3.33 million) last year because of impairments on investments.
Owned by one of the largest asset managers in the Kingdom, Al Rahji Capital, the
fund said impairment costs reached SR64.9 million in 2020.
Real estate investment depreciation also increased 63 percent year-on-year,
according to the Tadawul filing. Meanwhile operating expenses rose 48 percent.
Funds from operations stood at SR105.1 million in 2020, compared to SR82.74
million in 2019.
The COVID-19 pandemic has affected many tenants’ ability to pay rent, which has
become a challenge for some property investment companies and real estate
investment trusts (REITs).