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Riyad REIT

Riyad REIT fund is your gateway to Real Estate investments, which gives you the chance to explore great opportunities in the local Real Estate market and targets attractive returns to the investor.

  • Conditional income: If they are profitable, REITs are required to distribute a minimum of 90% of the funds net profits annually to its unit holders.
  • Additional investment opportunity and increased diversification.
  • Easy to invest in as REITs are similar to equities.
  • High transparency as REITs must disclose periodical financial statements similar to the other listed equities.
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Overview

Objectives :

The Fund intends to own and/or develop a portfolio of income-producing real estate assets.  The Fund Manager is initially targeting to distribute to investors an annual cash dividend in the amount of 90% of net income. It is expected that the amount of such annual dividend will increase over the Fund Term as the number of income-producing properties in the Fund’s portfolio increases.

Strategy:

The main objective of the Fund is to provide investors with a consistent, moderately-growing, income distribution from real estate investments.  The Fund intends to acquire, develop and maintain a diversified portfolio of real estate properties by pursuing different strategies including the following

 
  • Acquisition of high quality income-generating properties
  • Acquisition and enhancements of underutilized income-generating properties
  • Development of new properties and operating them thereafter

Riyad REIT Facts:

  • Launch Date: 9th of June 2015
  • Listing Date: 13th November 2016
  • Fund Manager: Riyad Capital 
  • Fund Currency: SAR 
  • Sector Focus: Diversified
  • Fund Term: 99 years 

Past performance is not a guarantee of future returns. The value of units, the income from them, the prices and currencies of the funds, can go down as well as up. Investors may get back less than he or she originally invested. Additionally fees shall apply on the fund. Changes in currency rates may have an adverse effect on the value, price or income of the security. To ensure proper understanding of the fund and its suitability for you according to your risk tolerance, we recommend that you seek a specialized investment advisor. More information about the fund is available in the Terms and Conditions applicable to that fund and must be read carefully before investing. While reading the fund’s Terms and Conditions, please refer to the principal risks of investing in the Fund.

Fund Documents

REIT Funds

Eligibility

  • Saudi & Foreigners

How to Apply

As with listed shares of companies, there are two ways to invest in REITs:

  • Upon IPO, when Investment funds are listed by REITs fund managers (Primary Market).
  • After listing fund units in the market, where investors are able to buy fund units just like equities (Secondary Market).

Rates & Fees

  • Management Fees:1.2% 
  • Custodian Fee SAR 100,000
  • Other Expenses:0.5%
For more information regarding the fees, please refer to the Terms and Conditions 

Valuation Reports

The table Title
Year
Report 
2020
Second Half
Valuation Report 
First Half
  Valuation Repor
2019
Second Half
Valuation Report 
First Half
Valuation Report

Announcements



Wednesday, 24 January 2024
Announcement by Riyad Capital regarding a change in the membership of the board of Riyad REIT.
Riyad Capital announces a change in the membership of the board of Riyad REIT due to resignation of the board member Mr. Mohammed Abdulhamid Almubarak (Independent member) as of 19/07/1445H, corresponding to 31/01/2024G. The formation of the board after the change shall be:

  1. Mr. Raed Ghaith Albarakti (Chairman – Non-Independent)
  2. Mr. Abdullah Iyad Alfaris (Member – Non-Independent)
  3. Mr. Ahmed Abdulrahman Alharbi (Member – Non-Independent)
  4. Mr. Abdulrahman Abdulaziz Alahmad (Member – Non-Independent)
  5. Mr. Walid Ali Alqassem (Member – Independent)

 

 


Announcement by Riyad Capital regarding the availability of the Quarterly statement of Riyad REIT Fund for the period ending on 31 December 2023


Riyad Capital announces the availability of the quarterly statement of Riyad REIT for the period ending on 31/12/2023.

A copy of the quarterly statement can be found in the attachments.
 




 Riyad Capital announces an Addendum Announcement regarding an update of the terms and conditions of Riyad REIT

Following the announcement for Riyad Capital published on (05/06/1445 H) corresponding to (18/12/2023 G). The Fund Manager wishes to clarify that the terms and conditions of the fund are available in English language.

  • There is no impact on the fund

 



Announcement by Riyad Capital regarding an update of the terms and conditions of Riyad REIT.

Riyad Capital announces an update of the terms and conditions of Riyad REIT, as of (19/06/1445 H) corresponding to (01/01/2024 G). A summary of the main updated items are as follows:

  • Adding the zakat advisor, Implementing the rules for collecting zakat from investors in investment funds.
  • Adding zakat advisor fees.
  • Updating auditor fees.
  • Updating the board members names, due to the reformation of Riyad REIT board of directors.
  • Updating other funds managed by Riyad REIT’s board members.



Announcement by Riyad Capital regarding the details of non-fundamental changes to Riyad REIT.

Riyad Capital announces the approval of Fund’s Board of Directors of a non-fundamental change to Riyad REIT, such change will become effective on (19/06/1445 H) corresponding to (01/01/2024 G).
The details of the non-fundamental change are as follows:

  • Adding the zakat advisor, Implementing the rules for collecting zakat from investors in investment funds.
  • Adding zakat advisor fees.
  • Updating auditor fees.
  • Updating the board members names and their qualifications, due to the reformation of Riyad REIT board of directors.
  • Updating other funds managed by Riyad REIT’s board members.

 



Announcement by Riyad Capital Company regarding a change in the membership of the board of Riyad REIT.

Riyad Capital company announces a change in the membership of the board of Riyad REIT due to appointment of board member Mr. Ahmed Abdulrahman Alharbi (Dependent member) and appointment of board member Mr. Abdulrahman Abdulaziz Alahmad (Dependent member) as of 30/4/1445H, corresponding to 14/11/2023G. The formation of the board members after the change shall be:

  1. Mr. Raed Ghaith Albarakti (Dependent member)

  2. Mr. Abdullah Iyad Alfaris (Dependent member)

  3. Mr. Ahmed Abdulrahman Alharbi (Dependent member)

  4. Mr. Abdulrahman Abdulaziz Alahmad (Dependent member)

  5. Mr. Walid Ali Alqassem (Independent member)

  6. Mr. Mohammed Abdulhamid Almubarak (Independent member)

 

 

Announcement by Riyad Capital regarding a change in the membership of the board of Riyad REIT.
Riyad Capital announces a change in the membership of the board of Riyad REIT due to resignation of the chairman Mr. Adel Alateeq (Dependent member) and Mr. Abdulrahman Almashal (Dependent member) as of 7/4/1445H, corresponding to 22/10/2023G. The formation of the board after the change shall be:

  1. Mr. Raed Ghaith Albarakti (Dependent member)

  2. Mr. Abdullah Iyad Alfaris (Dependent member)

  3. Mr. Walid Ali Alqassem (Independent member)

  4. Mr. Mohammed Abdulhamid Almubarak (Independent member)

 
 

Announcement by Riyad Capital regarding the availability of the Quarterly statement of Riyad REIT Fund for the period ending on 30/09/2023


Riyad Capital announces the availability of the quarterly statement of Riyad REIT for the period ending on 30 September 2023.

A copy of the quarterly statement can be found in the below
https://www.riyadcapital.com/documents/671358/0/Fact+Sheet+Q3+2023+En.pdf/71d35178-4427-2339-d826-c4b73cbe7c14?t=1696940117697
 

 

Riyad Capital announces an addendum announcement regarding the Distribution of Profits to Unitholders of Riyad REIT Fund

Following the announcement for Riyad Capital (“the Fund Manager”) published on 7/2/1445H corresponding to 23/8/2022G regarding the distribution of profits to unitholders of Riyad REIT. The Fund Manager wishes to clarify that the distribution date will be on 19/3/1445AH corresponding to 05/10/2023AD, which is within fifteen days from the due date.

  • There is no Impact on the fund

 



Announcement by Riyad Capital for the availability of the semiannual reports of the assets of Riyad REIT for the period ending on 30/06/2023

 

Riyad Capital announces that semiannual evaluation reports of the assets of Riyad REIT for the period ending on 30/06/2023, prepared by two accredited valuers are available. According to the policy of Fund Asset Evaluation stated in the Terms and Conditions.

 

A copy of the reports can be found on the link below


https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
 

Announcement by Riyad Capital regarding the distributions of Fund’s dividends to the Unitholders of Riyad REIT

Riyad Capital announces the distribution of cash dividends to the Unitholders of Riyad REIT for the first half of 2023, as follows:

‒ The eligibility of dividends shall be for the unit holders registered in the registers of the Securities Depository Center by the closing of Tuesday 19/09/2023G. (end of trading day on 17/09/2023G);

‒    Total cash distribution is SAR 42,924,275.25;

‒    The distributions will be based on 171,697,101 existing units;

‒    The distribution amount is SAR 0.25 per unit;

‒    The distribution percentage is 2.19% of the net asset value
-    Distributions shall be paid within 15 business days post eligibility date.

The Fund Manager would like to remind entitled Unitholders to update their bank account information in order to ensure depositing the outstanding distribution to their accounts directly.

 
 

Announcement by Riyad Capital for providing the Public with the Interim Financial Statements of Riyad REIT Fund for the period ending on (30-06-2023)

 

Riyad Capital announces that the interim financial statements of Riyad REIT for the period ending on 30/6/2023 are available to the public.

The following is the summary of the interim financial results of the period:

 

Net Assets on the End of the period   SAR 1,959,250,216

Total Expenses and Fees for the period  SAR 102,523,820

Net Profit (Loss) for the period   SAR 34,907,867

Number of Outstanding Units at the End of the period    171,697,101

Net Asset Value per Unit  11.41

Revenue of the period   2.57%   

 
  • Additional Information

Total Revenue for the period is SAR 152,913,565

Funds from Operations for the period is SAR 50,389,745




Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending on 30 June 2023

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending on 30 June 2023

You can find a copy of the Fund’s quarterly factsheet on the link below:

https://www.riyadcapital.com/en/Images/Fact%20Sheet%20Q2%202023%20En_tcm10-30224.pdf




 
Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending on 31 March 2023

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending on 31 March 2023
You can find a copy of the Fund’s quarterly factsheet on the link below:
https://www.riyadcapital.com/en/Images/Fact%20Sheet%20Q1%202023%20En_tcm10-30028.pdf


 
 

Announcement by Riyad Capital that Riyad REIT Fund's annual report, including the annual audited financial statements, for the period ended on (31/12/2022) are available to the public

 

Net Assets 1,947,684,790

Total Expenses and Fees 182,270,526

Net Profit/(Loss) 88,927,084

Number of the Outstanding Units 171,697,101

Net Unit Value  11.34

Revenue for the Period (%) 6.16%

Hyperlink to Financial Statements           

Additional Information:

- Total Income for the period is SAR 302,161,365, an increase of 13% from last year

 

- Funds from Operations (FFO) for the period SAR 119,890,839

 

- An increase in Funds from Operations by 27% due to the following reasons:

 

* Increase in operational income related to the hospitality sector, due to the official opening of JW Marriott Hotel and the demand on Riyad Season and holding exhibitions conferences which contributed to the recovery of tourism activity in the city of Riyadh and the Kingdom in general.

 

* An increase in rental income as a result of the realized annual rent from Saudi Tourism Authority Headquarter in Riyadh as well as the renewal of some lease contracts with an escalation in the annual rent value and increase in rented area

 

• The fund achieved a capital gain of SAR 20,532,353 as a result of exiting a real estate investment in the United States of America

 

-This comes despite the many challenges that the fund has faced, specifically the increase in financing expenses as a result of the increase in interest rates where the additional financing costs reached SAR 22,093,685 for the year 2022.

 
 

Announcement by Riyad Capital regarding the distributions of Fund’s dividends to the Unitholders of Riyad REIT Fund

Riyad Capital announces the distribution of cash dividends to the Unitholders of Riyad REIT for the second half of 2022, as follows:
‒ The eligibility for dividends shall be for Unitholders registered in the registers of the Securities Depository Center by the end of Monday, 10 April 2023 (end of trading day on Thursday, 6 April 2023).
‒    Total cash distribution is SAR 42,924,275.25
‒    The distributions will be based on 171,697,101 existing units;
‒    The distribution amount is SAR 0.25 per unit
‒    The distribution percentage is 2.20% of the net asset value;

The Fund Manager would like to remind the unitholders to update their information with the Capital Market Institution, where their accounts are being held, to ensure the direct deposit of their due distributions

 



Announcement by Riyad Capital for the availability of the semiannual reports of the assets of Riyad REIT for the period ending on 31/12/2022
Riyad Capital announces that semiannual evaluation reports of the assets of Riyad REIT for the period ending on 31/12/2022, prepared by two accredited valuers are available. According to the policy of Fund Asset Evaluation stated in the Terms and Conditions.

For a copy of the reports, please click the below links:


https://www.riyadcapital.com/en/Images/Riyad%20REIT%20-%20Mumtalakti%20EN_tcm10-15222.pdf

https://www.riyadcapital.com/en/Images/Riyad%20REIT%20-%20Abaad%20EN_tcm10-15566.pdf

 
Riyad Capital announces the availability of the quarterly statement of Riyad REIT for the period ending 31 December 2022

Riyad Capital announces the availability of the quarterly Statement of Riyad REIT for the period ending 31 December 2022
You can find a copy of the Fund’s quarterly factsheet in the attachments, or on the link below:

https://www.riyadcapital.com/en/Images/Fact%20Sheet%20Q4%202022%20En_tcm10-29678.pdf

 
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 September 2022

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 September 2022
You can find a copy of the Fund’s quarterly factsheet in the attachments, or on the link below:


https://www.riyadcapital.com/en/Images/Fact%20Sheet%20Q3%202022%20En_tcm10-29121.pdf
 


 

Announcement by Riyad Capital Regarding the Occurrence of a Specific Event in Riyad REIT (Investing SAR 61.8M in a Private Real Estate Fund)

 

Riyad Capital ("Fund Manager") has announced that Riyad REIT Fund has invested SAR 61.8 in a private closed-end Real Estate Fund that is income-generating and Shariah-compliant and managed by Riyad Capital.

 

The private fund aims to achieve stable current income and grow the invested capital in the medium and long term by acquiring high-quality institutional real estate assets with stable returns and a diversified tenant base in prime locations within the Kingdom of Saudi Arabia.

The private real estate fund’s target size is SAR 3 billion, and the initial closing size is SAR 315 million. The fund term is twenty years, extendable for an additional five years.

The private real estate fund under investment consists of a diversified real estate portfolio of assets leased by institutions and listed companies, which enhances the quality of the fund's tenants. Furthermore, acquisitions in the private real estate fund would be financed by accepting cash and in-kind contributions in addition to bank facilities - obtained from Riyad Bank - in compliance with Shariah standards.

 

Due to the private fund being managed by the fund manager, the members representing the fund manager on the board of directors of Riyad REIT Fund abstained from voting on the fund manager's recommendation to invest in the private fund.

It is worth noting that the investment of the Riyad REIT Fund was fully financed from the Sharia-compliant bank facilities available to the REIT.

 

The investment is expected to generate an average annual return of 8.5% paid semi-annually over an investment period of five years.

It should be noted that the financial impact of the investment is expected to be positive, by increasing the value of the fund's revenues.

 
 

Announcement by Riyad Capital regarding the distributions of Fund’s dividends to the Unitholders of Riyad REIT

Riyad Capital announces the distribution of cash dividends to the Unitholders of Riyad REIT for the first half of 2022, as follows:
‒ The eligibility for dividends shall be for Unitholders registered in the registers of the Securities Depository Center by the end of Tuesday, 6 September 2022 (end of trading day on Sunday, 4 September 2022);
‒    Total cash distribution is SAR 75,546,724.44;
‒    The distributions will be based on 171,697,101 existing units;
‒    The distribution amount is SAR 0.44 per unit and its percentage of the unit initial price is 4.63%;
‒    The distribution percentage is 3.99% of the net asset value;

Distributions shall be paid within 15 business days post eligibility date.
The Fund Manager would like to remind entitled Unitholders to update their bank account information in order to ensure depositing the outstanding distribution to their accounts directly.
 

 
 

Riyad Capital Announces the Availability of the Interim Financial Statements of Riyad REIT Fund for the period ending on (30-06-2022) to the Public
 

Riyad Capital announces that the interim financial statements of Riyad REIT for the period ending on 30/6/2022 are available to the public. The following is the summary of the interim financial results of the period:


Net Assets at the End of the Period    SAR 1,938,148,571

Total Expenses and Fees for the Year/Period    SAR 76,485,143

Net Profit/(Loss) for the Year/Period    SAR 61,086,830

Number of the Outstanding Units at the End of Year/Period    171,697,101

Net Fair Value per Unit     11.29

Revenue of the period %    4.46 %

-    Additional Information  

Total Revenue for the period is SAR 153,053,851

Funds from Operations for the period is SAR 76,568,708

A 20% growth in Fund total asset from SAR 2.55 Billion in H1 2021 reaching SAR 3.05 Billion in H1 2022

An increase in Funds from Operations by 64% reaching SAR 76.57m (H1 2021: SAR 46.59m) due to the following reasons:

- An increase in the operational and rental income by 20% reaching SAR 56.04m (2021: SAR 46.59m) as a result of the renewal of some lease contracts with an escalation in the annual rent value, in addition to continuing to expand the fund's real estate portfolio through new acquisitions and investments.

- In addition, the fund achieved an additional profit of 20.53m Saudi riyals as a result of exiting a real estate investment in the United States of America
 

 
 

Announcement by Riyad Capital for the availability of the semiannual reports of the assets of Riyad REIT for the period ending on 30/06/2022

 

Riyad Capital announces that semiannual evaluation reports of the assets of Riyad REIT for the period ending on 30/06/2022, prepared by two accredited valuers are available. According to the policy of Fund Asset Evaluation stated in the Terms and Conditions.

For a copy of the reports, please click the below links:

https://www.riyadcapital.com/ar/Images/H1%20mumtalkaty_tcm9-15222.pdf
https://www.riyadcapital.com/ar/Images/H1parcode_tcm9-15566.pdf

 
 

Corrective Announcement from Riyad Capital Regarding the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 June 2022

 

Date of the Previous Announcement:2022-07-20 Corresponding to 1443-12-21

The Misstatement in the Previous Announcement:You can find a copy of the Fund’s quarterly factsheet on the link below:

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 

The Correction of the Misstatement:You can find a copy of the Fund’s quarterly factsheet on the link below:

https://www.riyadcapital.com/en/Images/Fact%20Sheet%20Q2%202022%20En%20v3_tcm10-28745.pdf

 

The Impact Caused by the Misstatement:  N/A

 
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 June 2022

 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 June 2022

You can find a copy of the Fund’s quarterly factsheet on the link below:

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
 

Announcement by Riyad Capital Regarding the Occurrence of a Specific Event in Riyad REIT (The Opening of JW Marriott Hotel)

Riyad Capital ("Fund Manager") announces the opening and flagging of the JW Marriott Hotel Riyadh as Saudi Arabia's first JW Marriott.  The property was formerly known as Burj Rafal Riyadh.

The Fund Manager stated that the development of the hotel has achieved the first milestone in the improvement plan (Phase I) to deliver a unique luxury corporate destination in the new business center near KAFD, strategically located on King Fahad Road and within proximity to major businesses, government entities, and entertainment areas in Riyadh.

The Fund Manager revealed that the first phase of the improvement plan enhances the arrival experience and introduces new high-end amenities and food and beverage outlets. The remaining phases of the improvement plan will commence in accordance with the strategy set by the Fund Manager to achieve the optimal returns to unitholders.

It is expected that this will have a positive impact on the Fund results.
 


 

Announcement by Riyad Capital Regarding the Occurrence of a Specific Event in Riyad REIT (Renewal of the Lease Agreement of STC Academy)

Riyad Capital ("Fund Manager") announces that Riyad REIT renewed the lease agreement of STC Academy, the commercial part of Rafal Tower for a period of 5 years ending on 07/08/2027 AD, with an increase in the rental area from 3,568 square meters to 4,018 square meters with an annual rent value of SAR 5,223,400.

The renewal and increase in the space reflect the property’s quality of construction and geographical location, and the features offered by the commercial part, such as a private entrance and parking spaces for the academy, in addition to the connection of the commercial part with the JW Marriott Hotel.

It is worth mentioning that the financial impact of the renewal is expected to be positive, by increasing the value of the fund's revenues.
 

 
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 March 2022

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 March 2022

You can find a copy of the Fund’s quarterly factsheet on the link below:

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
 

Announcement by Riyad Capital that Riyad REIT’s annual reports for the period ending on 31 December, 2021 are available to the public

 

Riyad Capital announces the availability of the Annual Report of Riyad REIT for the period ending 31 December 2021.

 

Please visit the below link for the Annual Report:

http://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
 

Announcement by Riyad Capital regarding a Material Development of Riyad REIT (Making a Profit from the sale of a Real Estate Asset in the USA)
Riyad Capital (the “Fund Manager”) has announced the completion of the exit of Riyad REIT from an investment in a real estate asset in the United States of America (350 Rhode Island Building, San Francisco, California), with a total return (ROI) of 57% and an internal rate of return (IRR) of 27%.
It is worth noting that in December 2019, Riyad REIT invested SAR 350.8 million in a diversified real estate portfolio in the United States of America consisting of three Class-A real estate assets.
The 350 Rhode Island office building is 98% leased to the City of San Francisco (investment grade) and 2% leased to Starbucks (investment grade) located in San Francisco with a 14-year lease term. The Property is 11,808 square meters and is surrounded by the world’s most recognized technology companies. The San Francisco Bay Area is considered among the strongest office markets in the U.S. and has the second highest number of Fortune 500 companies in the country.
Since 2019, Riyad REIT has invested a total of SAR 910 million in a series of international property offerings in the U.S. and Europe.
As a result of the sale of the real estate asset, Riyad REIT achieved an additional net profit of SAR 0.12 per unit. This will have a positive impact on the first half of 2022 results.

 

 

Riyad Capital Announces the Availability of the Annual Financial Report of Riyad REIT Fund for the Financial Year Ending on ( 2021-12-31 ) to the Public
Riyad Capital Announces the Availability of the Annual Financial Report of Riyad REIT Fund for the Financial Year Ending on ( 2021-12-31 )
- Net Assets at the End of the Period SAR 1,752,782,612
- Total Expenses and Fees for the Year/Period SAR 139,962,898
- Net Profit/(Loss) for the Year/Period SAR 96,550,165
- Number of the Outstanding Units at the End of Year/Period 171,697,101
- Net Unit Value SAR 10.20
- Revenue of the period %7.43%
- Total Revenue for the period is SAR 267,476,818
- Funds from Operations for the period is SAR 127,513,920
- An increase in Funds from Operations by 83% reaching SAR 127.5m (2020: SAR 69.7m) due to the following reasons:
-    Increase in hotel operational income related to the hospitality sector by 75% reaching SAR 83.4m (2020: SAR 47.7m), due to the demand on domestic tourism and holding exhibitions conferences which contributed to the recovery of tourism activity in the city of Riyadh and the Kingdom in general.
-    An increase in rental income by 27% reaching SAR 133.4m (2020: SAR 105.2m) as a result of the renewal of some lease contracts with an escalation in the annual rent value, in addition to continuing to expand the fund's real estate portfolio through new acquisitions and investments made during the year, which includes:

•    Amerisource Bergen Headquarter in the USA
•    Saudi Tourism Authority Headquarter in Riyadh, KSA
•    PwC Headquarter in Brussels, Belgium

-    In addition, the fund achieved an additional profit of 18,979,988 Saudi riyals as a result of exiting a real estate investment in the United States of America
-    A 22% growth in Fund total asset from SAR 2.52 Billion in 2020 reaching SAR 3.07 Billion in 2021.
please klick the below link for the report:

 

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit



 
Riyad Capital announces an addendum announcement regarding the Distribution of Profits to Unitholders of Riyad REIT Fund

Following the announcement for Riyad Capital (“the Fund Manager”) published on 12/7/1443H corresponding to 13/2/2022G regarding the distribution of profits to unitholders of Riyad REIT. And in reference to Saudi Exchange & Edaa announcement dated 02/3/2022 regarding changes to general assemblies and dividends services, which states that cash dividend services will be paused for some period. The Fund Manager wishes to clarify that the eligibility date for dividends shall be for Unitholders registered in the registers of the Securities Depository Center by the end of Monday, 28 March 2022 (end of trading day on Thursday, 24 March 2022).
The Impact Caused by the Change is in the eligibility date for dividends.

Announcement by Riyad Capital regarding the distributions of Fund’s dividends to the Unitholders of Riyad REIT

Riyad Capital announces the distribution of cash dividends to the Unitholders of Riyad REIT for the second half of 2021, as follows:
‒    Total cash distribution is SAR 80,697,637.47;
‒    The distributions will be based on 171,697,101 existing units;
‒    The distribution amount is SAR 0.47 per unit and its percentage of the unit initial price is 4.94%;
‒    The distribution percentage is 4.51% of the net asset value (based on fair value) of the Fund as of 31 December 2021;
‒    The eligibility for dividends shall be for Unitholders registered in the registers of the Securities Depository Center by the end of Monday 4 April 2022 (end of trading day on Thursday, 31 March 2022);
Distributions shall be paid within 15 business days post eligibility date.
The Fund Manager would like to remind entitled Unitholders to update their bank account information in order to ensure depositing the outstanding distribution to their accounts directly.

 
 

Announcement by Riyad Capital for the availability of the semiannual reports of the assets of Riyad REIT for the period ending on 31/12/2021

 

Riyad Capital announces that semiannual evaluation reports of the assets of Riyad REIT for the period ending on 31/12/2021, prepared by two accredited valuers are available, according to the policy of Fund Asset Evaluation stated in the Terms and Conditions.

 

For a copy of the reports, please click the below link:

 

http://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit



 
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 December 2021

 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 December 2021

You can find a copy of the Fund’s quarterly factsheet on the link below:

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
 

Announcement by Riyad Capital Regarding the Occurrence of a Specific Event in Riyad REIT (Investing SAR 233 million in a logistics portfolio in the United States of America)

 

Riyad Capital ("Fund Manager") has announced that Riyad REIT has invested SAR 233 million in a U.S. Logistics portfolio consisting of five high-quality income generating properties of newly built, Class A logistics properties 100% leased to high quality tenants with a weighted average term of 15.5 years in four different locations (St. Louis - Missouri, Houston- Texas, Greenville/Spartanburg – South Carolina, Birmingham-Alabama), USA. 

 

The properties are newly developed, built-to-suit logistics totaling over 4.5 million square feet across the Southeast U.S. – the fastest growing region in the U.S. that is recognized as an industrial and logistics hub. The 15-year (+) leases are to three strong tenants:

 
  • Amazon (S&P A-, Fortune 500 (no. 2) company, $1.67 trillion market cap),
  • Lowe’s (S&P BBB+, Fortune 500 (no. 44), $149 billion market cap), and
  • Techtronic Industries (one of the largest global power tools companies with a market cap of $32.8 billion).
 

Logistics is considered one of the strongest real estate asset classes with significant level of institutional capital pursuing the asset class.

 

The investment is part of the Fund’s capital increase process by issuing new shares, and has been funded entirely through the available shariah-compliant short-term debt facility for Riyad REIT. The facilities will be repaid after the capital raising process is complete.

 

The investment is expected to generate an average annual yield of 7.5% to Riyad REIT over a 4-year investment period.

 
 

Announcement by Riyad Capital regarding a Material Development of Riyad REIT(The board of directors' recommendation to start the fund's capital increase procedures)

 

Riyad Capital (the "Fund manager"), announces Riyad REIT Fund board of director's recommendation to take the necessary measures to start increasing the fund's capital, which requires obtaining the approval of the relevant official authorities and unit holders.

 

Accordingly, the fund manager expects that the impact of this development will be generally positive on the fund.

 
 

Announcement by Riyad Capital Regarding a Change of the Membership of the Board of Directors of Riyad REIT

 

Riyad Capital (“The Fund Manager”) announces a change in the membership of the board of Riyad REIT due to the appointment of board member Mr. AbdullahIyadAlFaris dependent board member as of (23/4/1443 H) corresponding to (28/11/2021 G).

The formation of the board after the change shall be:

  1. Adel Ibrahim AlAteeq (Fund Chairman)
  2. Raed Ghaith AlBarakati (Dependent Board Member)
  3. Abdulrahman Abdulaziz AlMashal (Dependent Board Member)
  4. Abdullah Iyad Alfaris (Dependent Board Member)
  5. Walid Ali AlGasim (Independent Board Member)
  6. Mohammed Abdulhamid AlMubarak (Independent Board Member)
 


 

Announcement by Riyad Capital Regarding an Update of The Terms and Conditions of Riyad REIT

 

Riyad Capital (“The Fund Manager”) announces an update of the terms and conditions of Riyad REIT as of (23/4/1443H) corresponding to (28/11/2021G).

A summary of the main updated items are as follows:

  • Update the name of each of the following:
-Authorized Persons Regulation
-Authorized Person
-The fund's classification
-Saudi Arabian Monetary Authority (SAMA)
-VAT percentage
-Real Estate Investment Traded Funds Instructions
  • Updating the Fund Manager’s paid-in capital
  • Updating the name of the Shari'a Committee and updating the CVs of its members
  • Updating other funds managed by The Fund’s board members


 
 

Announcement by Riyad Capital regarding a Material Development of Riyad REIT (Making a Profit from the sale of a Real Estate Asset in the USA)

 

Riyad Capital (the “Fund Manager”) has announced the completion of the exit of Riyad REIT from an investment in a real estate asset in the United States of America (Two Washingtonian Building, Washington D.C. Metro Area), with a total return (ROI) of 51% and an internal rate of return (IRR) of 24.4%.

The returns included approximately 9.9% of annual cash dividends starting from the inception of the investment on December 8, 2019, in addition to capital gains of about 36%.

 

It is worth noting that in December 2019, Riyad REIT invested SAR 350.8 million in a diversified real estate portfolio in the United States of America consisting of three Class-A real estate assets, and the investment in the Two Washingtonian offering is equivalent to SAR 52,508,513.

 

The Property is 100% leased to Leidos Holding (an investment grade Fortune 500 company considered one of the largest government contractors) under a 13-year lease. The 27,287-square-meter property is located in the Washington metropolitan area within the Biotechnology Cluster - one of the best biotechnology clusters in the United States.

 

Since 2019, Riyad REIT has invested a total of SAR 675 million in a series of international property offerings in the U.S. and Europe.

 

The effect of the event

As a result of the sale of the real estate asset, Riyad REIT achieved an additional net profit of SAR 0.11 per unit.

 
Announcement by Riyad Capital Regarding the Occurrence of a Specific Event in Riyad REIT (Renewal of the Lease Agreement of The Saudi Electronic University Main Campus)

Riyad Capital ("Fund Manager") announces that Riyad REIT renewed the lease agreement of The Saudi Electronic University main campus until 12/04/2024, with an increase in the annual rent value from SAR 11,400,000 to SAR 12,000,000.

 

The renewal with a strong government educational institution reflects the quality of the property and its prominent location within a growth corridor in Riyadh combined with its close proximity to transportation facilities – metro and bus stations.   

 

It is worth mentioning that the financial impact of the renewal is expected to be positive, by increasing the value of the fund's revenues.

 
 


Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 September 2021

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 September 2021
You can find a copy of the Fund’s quarterly factsheet on the link below:

 

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
 

Announcement by Riyad Capital Regarding the Occurrence of a Specific Event in Riyad REIT (Investing SAR 24 million in a headquarters office building Brussels, Belgium)

Riyad Capital announces that Riyad REIT has invested SAR 24 million in a Belgian office building on land area of 10,186 square meters (plus approximately 755 parking spaces) and net leasable area of 35,536 square meters located in Brussels (the Capital of the European Union), Belgium.
The Property is the PricewaterhouseCoopers (PwC) Headquarters in Belgium, a Class A office building. PwC, is the second largest professional services company and is considered one of the Big Four accounting firms. PwC operates in more than 150 countries and generated over $40 billion in revenues globally in 2020.  Western Europe accounted for 32% (over 90,000 people) of PwC’s workforce – representing the largest allocation of employees for the company.  

The Property is situated within Airport District – a hub for international companies that is characterized by the strong presence of international corporates, excellent mobility, and low property taxes. The District is home to 317 companies, together directly and indirectly generating employment for 64,000 people. The immediate area also includes major companies such as EY, CISCO, UPS, Microsoft, ExxonMobil, Samsung, Sony, Deloitte, Toyota and other large corporations.

The investment is funded from the Shariah-compliant facilities available to Riyad REIT.
The investment is expected to generate an average annual yield of 8% to Riyad REIT over a 5-year investment period.
 

 
 

Announcement by Riyad Capital Regarding the Occurrence of a Specific Event in Riyad REIT (Acquiring an office building worth SAR 184 million in Riyadh)
 
Riyad Capital announces the completion of a property acquisition in Riyadh by RIYAD REIT (“Fund Manager”) on 23/08/2021. Details are as follows:
-    Office property is located in Al Raed district on King Abdullah Road in Riyadh with built-up area of 26,520 square meters.
-    The Property has a core location situated on King Abdullah Road, opposite to King Saud University and next to King Abdulaziz City for Science and Technology. The property is also within walking distance from Prince Turki Ibn Abdulaziz Al Awwal Metro Station.
-    The property was acquired at SAR 184,437,500, reflecting an initial acquisition yield of 8%.
-    The property was financed through Shariah-complaint bank debt.
-    The property is newly developed and is fully leased as a NNN lease for 3 years to a government related entity, which is an extendable lease.
-    The Property was purchased without related parties, and without any conditions.
 
This acquisition is a continuation of the Fund Manager’s strategy to continue expanding and diversifying the REIT’s real estate portfolio – both locally and internationally – through the acquisition of high-quality properties located in strategic locations and leased to credit-worthy tenants.    
 
The financial impact of this transaction is expected to be generally positive on the fund's results, by the end of the second half of this year.


 


 

Announcement by Riyad Capital Regarding the Occurrence of a Specific Event in Riyad REIT (Investing SAR 60 million in a headquarter office building in the United States of America)

 

Riyad Capital has announced that Riyad REIT has invested SAR 60 million in a U.S. office building on land area of 14,892 square meters (plus approximately 1,394 parking spaces) and net leasable area of 39,867 square meters located in Conshohocken (Philadelphia MSA), Pennsylvania, United States of America.

 

The Property is AmerisourceBergen Global HQ, a Class A office which is the headquarters of one of the largest global companies in the world.  AmerisourceBergen, is an investment-grade tenant that is ranked #8 on Fortune 500. The Company is also one of the largest pharmaceutical distributors in the world handling over 30 percent of the world’s pharmaceuticals and generating revenues of nearly $190 billion.  This is an essential sector, especially in the post-COVID era that requires significant distribution of pharmaceutical products and vaccines.

 

The Property is located in close proximity to many entertainment and activity destinations including King of Prussia Mall (the third largest mall in the US), Gulph Mills Golf Club and other destinations.  The immediate area also includes major companies such as, Amazon, UBS, Mercyhealth, Oracle, Morgan Stanley, Credit Suisse and other large corporations.

 

The investment is funded from the Shariah-compliant facilities available to Riyad REIT.

 

The investment is expected to generate an average annual yield of 8% to Riyad REIT over a 5-year investment period.

 
 

Announcement by Riyad Capital regarding the distributions of Fund’s dividends to the Unitholders of Riyad REIT

Riyad Capital announces the distribution of cash dividends to the Unitholders of Riyad REIT for the first half of 2021, as follows:

▪ Total distributed dividends SAR 46,358,217.27
▪ Cash Distributions will be made on the basis of 171,697,101 outstanding units.
▪ The amounts of dividends distributed is SAR 0.27 for each unit.
▪ The distribution ratio is 2.71% of the net value of assets as of Wednesday, 20/11/1442H corresponding to 30/06/2021G.
▪ The percentage of dividends to the Unit's Initial Price 2.84%.
▪ Cash distribution entitlements to unitholders shall be based on the unitholder register on the end of Tuesday, 16/01/1443 H, corresponding to 24/08/2021 G (end of trading day on Sunday 14/01/1443H corresponding to 22/08/2021G).
▪ Distributions shall be paid within 15 working days from eligibility date.

The Fund Manager would like to remind the unitholders to update their information with the Capital Market Institution, where their accounts are being held, to ensure the direct deposit of their due distributions.

 


 

Announcement by Riyad Capital for the availability of the semiannual reports of the assets of Riyad REIT for the period ending on 30/06/2021

 

Riyad Capital announces that semiannual evaluation reports of the assets of Riyad REIT for the period ending on 30/06/2021, prepared by two accredited valuers are available. According to the policy of Fund Asset Evaluation stated in the Terms and Conditions

 
 

Riyad Capital announces the availability of the Annual Report of Riyad REIT for the period ending 31 December 2020

 

Riyad Capital announces the availability of the Annual Report of Riyad REIT for the period ending 31 December 2020.

 

Please click here to view the report.

 
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 March 2021

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 March 2021
You can find a copy of the Fund’s quarterly factsheet on the link below:

 

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
 

Riyad Capital Announces the Availability of the Annual Financial Report of Riyad REIT for the Financial Year ending on 31/12/2020 to the Public

Riyad Capital announces the availability of the annual financial results for Riyad REIT, and below is the summary of the annual financial results for the year ending 31/12/2020:

- Net Assets (based on fair value) at the end of the period SAR 1,646,154,125
- Total expenses and fees for the period (SAR 88,517,867)
- Net income for the period SAR 45,055,746
- Number of units available at the end of the period 171,697,101 units
- Net Asset Value per unit (based on fair value approach) SAR 9.59
- Total Revenue for the period is SAR 186,020,615
- Funds From Operations for the period SAR 69,709,545
- The yield for the period 4.38%

Please klick the below link for the Annual Financial Results:

 

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
 

Riyad Capital announces the distribution of dividends to Riyad REIT Fund unit holders
Riyad Capital announces the distribution of cash dividends to Riyad REIT Fund unit holders for the second  half of 2020 as follows:

- Total dividend distribution of SAR 42,924,275.25
- Cash distribution will be based on 171,697,101 existing units
- Dividend distribution amount is SAR 0.25 per unit, which represents 2.63% of the initial price; (initial price was calculated based on the current paid-up capital divided by issued shares).
- Dividend represents 2.61% of the Net Asset Value as of 2020-12-31 Corresponding to 1442-05-16
-The eligibility of dividends shall be for the unit holders registered in the registers of the Securities Depository Center by the closing of Tuesday 30/03/2021G corresponding to 17/08/1442H. (end of trading day on 28-03-2021G corresponding to 15/08/1442H).
- Dividends will be paid within (15) business days post the eligibility date.

The Fund Manager also would like to remind the unitholders to update their bank account information in order to ensure depositing the outstanding distribution to their accounts directly
 


 

Riyad Capital Announces the Availability of Riyad REIT Semi-Annual Valuation Reports for the Second Half of 2020

Riyad Capital announces the availability of Riyad REIT annual valuation reports for the Second Half of 2020. The reports are conducted by two independent and licensed valuers by Saudi Authority for Accredited Valuers: Barcode and Valustrat.
For a copy of the reports, please click the below link: 

 

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 December 2020

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 December 2020
You can find a copy of the Fund’s quarterly factsheet on the link below:
 

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit


 

Riyad Capital Announces the Occurrence of an Event Relating to Riyad REIT (Investing SAR 92.5 million in a U.S. office building in the United States of America)
 
Riyad Capital ("the Fund Manager") has announced that Riyad REIT has invested SAR 92.5 million in a U.S. office building on land area of 32,000 square meters (plus approximately 2,400 parking spaces) and net leasable area of 61,400 square meters located in Irvine (Orange County), Los Angeles MSA, California, United States of America.
The Property is the Broadcom Corporate Campus, a Class A office and R&D (research & development) mission critical campus located in Irvine (Orange County), California, next to the Irvine Spectrum Center – one of Southern California’s top retail and dining destinations. The Campus is located in close proximity to many entertainment and activity destinations including Disneyland, Laguna Beach, Newport Beach, Downtown Anaheim, and others. The Irvine Spectrum Area includes major companies such as, Lexus, KPMG, Amazon, UBS, Canon, Philips, and other large corporations.
The Property is leased to Broadcom Corporation (a wholly owned subsidiary of Broadcom, Inc.) on a long-term lease of 17 years. Broadcom Inc. is an investment-grade tenant, Fortune 500 Company, and a global technology leader that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom has a market cap of $154 billion, and an annual revenue of $22.6 Billion.  The Company is also a leader in R&D (investing $44.7 billion in R&D in 2019) and has one of the industry’s broadest IP portfolio with more than 23,000 patents.
The investment is funded from the Shariah-compliant facilities available to Riyad REIT.
The investment is expected to generate an average annual yield of 8% to Riyad REIT over a 5-year investment period.
 



Riyad Capital announces the occurrence of a specific event in Riyad REIT (Signing SAR 540 million Shariah-compliant facility agreement with Riyad Bank)

Riyad Capital (“the Fund Manager”) announces that Riyad REIT had signed a SAR 540 Million Shariah-compliant facility agreement with Riyad Bank. As a security for the facility, a promissory note will be provided and income-generating properties will be pledged. Loan duration is 5 years extendable to an additional 3 years. The facility amount will be paid once after 5 years from each withdrawal.

The facility will be used to finance acquisitions of new properties, investments and projects on behalf of Riyad REIT, and the fund manager expects that the results will be positive on Riyad REIT’s financial performance.
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 September 2020

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 September 2020
You can find a copy of the Fund’s quarterly factsheet on the link below:
https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
 

Riyad Capital Announces the Occurrence of an Event Relating to Riyad REIT (Investing SAR 45 million in a U.S. office building in the United States of America)

Riyad Capital has announced that Riyad REIT has invested SAR 45 million in a U.S. office building on land area of 84,174 square meters and net leasable area of 24,491 square meters located in the Dallas-Forth Worth Metro Area, United States of America.

The Property is the FedEx Office Headquarters, a Class A office building located in Legacy Business Park – which is widely recognized as one of the major business hubs of the Dallas area and includes the Toyota’s North American headquarters and regional offices for JPMorgan Chase, USAA, Bank of America, Coca Cola, Pepsi, Fannie Mae and many other Fortune 500 companies.

The Property is leased to FedEx Corporation on a long-term lease.  FedEx is an investment-grade tenant and is one of the largest logistics and delivery services companies worldwide, ranked #47 on Fortune 500.  The rapid growth of e-commerce has placed logistics and delivery services on the forefront of connecting consumers with online products and is expected to be a key growth sector over the long-term.   

The investment is expected to generate an average annual net yield of 8.50% to Riyad REIT unitholders over a 6-year investment period. The yield is net of all expenses, fees, and projected taxes. Based on the portfolio’s projections, Riyad REIT is expected to generate an incremental profit of more than SAR 0.015 per unit annually net of financing costs.
 


 

Riyad Capital announces the distribution of dividends to Riyad REIT Fund Unit Holders

Riyad Capital announces the distribution of cash dividends to Riyad REIT Fund unit holders for the first half of 2020 as follows:


- Total dividend distribution of SAR 34,339,420.20
- Cash distribution will be based on 171,697,101 existing units;
- Dividend distribution amount is SAR 0.20 per unit, which represents 2.10% of the initial price; (initial price was calculated based on the current paid-up capital divided by issued shares).
- Dividend represents 2.06% of the Net Asset Value as of 30/06/2020G, corresponding to 09/11/1441H.
- The eligibility of dividends shall be for the unit holders registered in the registers of the Securities Depository Center by the closing of Monday 07/09/2020G corresponding to 19/01/1442H. (end of trading day on 03-09-2020G corresponding to 15/01/1442H).
- Dividends will be paid within (15) business days post the eligibility date.

The Fund Manager wishes to remind the unit holders to update their bank accounts to ensure depositing the outstanding dividend to their accounts directly.

 
 

Riyad Capital announces the Availability of the Interim Financial Report for Riyad REIT for the Period Ending on 30/06/2020 to the public

 

Riyad Capital announces the availability of the interim financial results for Riyad REIT, and below is the summary of the interim financial results for the period ending on 30/06/2020:


- Net Assets (based on fair value) at the end of the period SAR1,669,996,625

- Total expenses and fees for the period SAR38,166,937

- Net income for the period SAR23,899,766

- Number of units available at the end of the period 171,697,101 units

- Net Asset Value per unit (based on fair value approach) SAR9.73

- Total Revenue for the period is SAR88,400,479

- Funds From Operations for the period SAR 35,140,432

- The yield for the period 2.1%

 

Please visit the below link for the Interim Financial Results:

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 

Riyad REITachieved total revenue of SAR 88,400,479 for the first half of 2020 compared to SAR 90,441,912 for the same period in 2019 (a decrease of 2.26%). The main reason for the decrease in total revenue is the decline in the hotels’ average occupancy rate and the closure of all hotel facilities such as meeting rooms and ballrooms due to the Covid-19 pandemic as hotel total income dropped to 39,562,243 for the period compared to SAR 56,544,079, a decrease of 30%. On the other hand, the REIT’s net income from investments in the United States of America increased to SAR 21,627,048 compared to SAR 1,362,200 for the same period in 2019, which mitigated the decline in total revenue for this period.

TheREIT's Funds from Operations (FFO) amounted to SAR 35,140,432 for theperiodcompared to SAR 41,214,908 for the same period in 2019 (a decrease of 15%) mainly due to the rise in cost of borrowing associated with new investments, and additional provisions for rents and precautionary measures against doubtful debts for the year 2020 reaching about SAR 5 million.

Net income fell to SAR 23,899,766 compared to SAR 33,644,216 for the same period in 2019 (a drop of 29%) due to the decline in funds from operations and the high depreciation costs associated with the increase in real estate investments.

It should be mentioned that the Fund Manager notices a gradual improvement in the real estate sector in the Kingdom of Saudi Arabia following the end of the curfew and the return of commercial activity in the local markets, while the hospitality sector is demonstrating an improvement at a slower pace considering that hotel performance in Riyadh, Jeddah and Khobar is mainly related to the international commercial movement to and from the Kingdom and social activities, celebrations and conferences.

The REIT also continues to work at an accelerated pace and invest during the current period to start working on improvements and new additions to Burj Rafal Hotel, related to the conversion to the JW Marriott Hotel Riyadh, which is planned during the first half of 2021;and finalizing building permits required to start the renovation of the Hilton Hotel on King Fahd Road. The Fund Manager upgraded the building to become a DoubleTree Hilton Hotel instead of Hilton Garden Inn based on the property's capabilities and commercial location.



 
 
 

Riyad Capital Announces the Availability of Riyad REIT Semi-Annual Valuation Reports for the First Half of 2020

Riyad Capital announces the availability of Riyad REIT annual valuation reports for the First Half of 2020. The reports are conducted by two independent and licensed valuers by Saudi Authority for Accredited Valuers: Barcode and Valustrat.
For a copy of the reports, please click the below link:

 

http://www.riyadcapital.com/ar/asset-management/public-funds/reits/riyad-reit

 
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 June 2020

 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 June 2020
You can find a copy of the Fund’s quarterly factsheet on the link below:

 

https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit


 

Riyad Capital announces the availability of the Annual Report of Riyad REIT for the period ending 31 December 2019

Riyad Capital announces the availability of the Annual Report of Riyad REIT for the period ending 31 December 2019.

 

Please visit the below link for the Annual Report:

 

 https://www.riyadcapital.com/en/asset-management/public-funds/reits/riyad-reit

 
Riyad capital Announces a Material Development to Riyad REIT Fund
Riyad Capital acting as the Fund Manager of Riyad REIT announces that the fund manager is carefully monitoring the impact of the COVID-19 pandemic, and the ongoing government efforts to manage and contain it.  Guidance on impact on the REITs revenues and income during 2020 will be highly dependent on the longevity of lockdown and travel restrictions.  Regardless of the duration of COVID-19’s impact on everyday life, we are taking proactive measures to maintain the stability of our business and ensure the continuity of operations.

Riyad REIT’s business model is diverse and is comprised of 4 main components: 1- Domestic Income Producing Real Estate Assets, 2- Investment in an International Real Estate portfolio which includes Income Producing Assets, 3- Domestic Operating Assets (Hotels), and 4- Repositioning Developments.   Our portfolio consists of 18 properties totaling 309,000 sqm. of leasable area located in eight cities in Saudi Arabia and the United States and occupied around by 150 tenants.  We believe each component will be impacted differently and have reviewed them independently.

(1) Domestic Income Producing Real Estate Assets: 10 Properties totaling 96,431 sqm. (31% of portfolio) and projected to generate 39% of Fund’s Gross Revenues in 2020.
 
- As of April 22, 2020, we have number of requests for waiver or deferment of rental payment until the curfew is lifted.  The total leasable area of these tenants totals 5,200 sqm. (less than 2% of total portfolio area) and the total revenue of the requested waiver/deferment is estimated at approx. SR 2,135,000 (less than 1.5% of Gross Potential Revenue).  The evaluation of these requests will be dependent on each tenant individually.  It should be noted that although COVID-19 has caused disruption to normal business activities, many tenants, and businesses continue to utilize office and retail space for remote working activities, delivery (F&B), and staff responsible for critical business operations. 

- As of April 22, 2020, one tenant, totaling 115 sqm. of space and approximately SR 60,000 of rental revenue (0.04% of total portfolio) has requested to terminate the lease.  The request is being reviewed and will follow the normal regulatory course of the lease agreement.

(2) Investment in an International Real Estate Portfolio which includes Income Producing Real Estate Assets consisting of 4 Properties totaling around 83,000 sqm. (27% of portfolio); area based on Riyad REIT investments allocation in these international opportunities.  International investments are projected to generate 27% of Fund’s Gross Revenues in 2020.

- As of April 22, 2020, there is no material impact on returns on international investments.

(3) Domestic Operating Assets (Hotels): 3 Properties totaling 124,241 sqm. (40% of portfolio) and are projected to generate 34% of Fund’s Gross Revenues in 2020.

- Riyad REITs investments in the hospitality sector is aligned with the tourism and entertainment objectives that serve as a cornerstone of Vision 2030.  We noted that hospitality would be a main beneficiary of the evolving trends that were taking shape in Saudi Arabia with the opening of the economy, opening of the tourism sector, and emerging entertainment sector.  The momentum witnessed in the hospitality and entertainment sector at the end of 2019 and beginning of 2020 reflected early signs of Vision 2030 taking shape.  The entertainment and F&B sectors generated significant activities, and hotels ran at notably higher occupancies.  Combined with G20 events in 2020, expectations pointed towards a very strong year for entertainment, leisure, and hospitality. 

- Operating assets are mostly dependent on daily occupancies which poses positive aspects, as well as challenges.  On the downside, operating hotel assets are very sensitive to disruptions in economic and leisure activities.  On the upside, these assets are well placed to lead a recovery when the economy opens up.  Operating hotel assets are not prone to longer term vacancy trends that could hit a rental property.  Therefore, the current pandemic conditions (travel restrictions, lockdowns in major cities, and drop in business activities) is expected to lead to material declines in anticipated revenue of operating assets.  The extent of these declines will be highly dependent on the duration of the current conditions.

- When evaluating the impact of the pandemic on operating hotel assets, it is also important to align projections with the seasonality of the hospitality sector. Historically, hotels in Saudi Arabia run at lower occupancy levels during Ramadan and summer months.  Depending on how long closures due to COVID-19 last, a bulk of the pandemic’s impacts could overlap with the historically lower hotel occupancy period – which could be a relatively positive outcome.  If closures extend beyond the summer months, hotel operating assets will begin losing revenue from the higher seasonality period – leading to lower projected revenues.

- Riyad Capital, the Fund Manager, along with hotel operating managers (Marriott, Ascott, and Boudl) are working together to implement strategies to stabilize the business in operating assets.  In addition to comprehensive property-level cost reduction initiatives, we are currently pursuing alternative sources of revenues by providing a home away from home for returning nationals, guests who are affected by border closures or people who have self-isolated.  These initiatives, and its impact on operating assets, will be more evident in the coming months and will continue to be evaluated. 

- In addition to operating initiatives that have been taken, we continue to use this period to facilitate property improvements plans on our flagship hospitality asset – Burj Rafal – as we progress towards the opening of JW Marriott Riyadh by Q4 2020.  

(4) Repositioning Developments: 1 Property totaling 5,900 sqm. (approx. 2% of portfolio).
 
- Alfursan Plaza is currently under redevelopment to position the asset as a Hilton property on King Fahad Road in Riyadh.  The property is anticipated to open in 18 months.  The property is well positioned at the center of Riyadh’s central business district, in very close proximity to Dr. Sulaiman Al Habib Hospital and multiple businesses.

- Current redevelopment plans are ongoing and we do not see disruptions in these plans.

- Due to the asset being a redevelopment, no revenues were projected for 2020, and therefore, there is no COVID-19 impact on the Fursan redevelopment.


In addition to property-level initiatives, we have also pursued overall fund-level initiatives.  We have taken prudent steps to increase cash reserves by targeting to distribute 90% of FFO – per CMA requirements – as opposed to full potential distribution. The cash reserve could serve as a cushion for operating assets if needed.  We have also requested a delay in financing expenses to the bank as per directives announced by Saudi Arabian Monetary Agency.  This should provide an additional cash reserve cushion towards any potential operating requirements.

With a strong, well-diversified asset and tenant base in attractive markets both domestically and internationally, we believe that Riyad REIT is well-positioned to continue generating cash flows as well as long-term value creation under significantly softer economic conditions due to the pandemic.  We will continue to evaluate and monitor the conditions and announce any material impacts as the situation evolves.
 
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 March 2020

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 March 2020
Please click here to view the quarterly fact sheet

 
 

Riyad Capital announces the distribution of dividends to Riyad REIT Fund Unit Holders

Riyad Capital announces the distribution of cash dividends to Riyad REIT Fund unit holders for the second half of 2019 as follows:

 
- Total dividend distribution of SAR 42,924,275.25
- Cash distribution will be based on 171,697,101 existing units;

- Dividend distribution amount is SAR 0.25 per unit, which represents 2.63% of the initial price; (initial price was calculated based on the current paid-up capital divided by issued shares).
- Dividend represents 2.59% of the Net Asset Value as of 31/12/2019G, corresponding to 05/05/1441H.
- The eligibility of dividends shall be for the unit holders registered in the registers of the Securities Depository Center by the closing of Tuesday 14/04/2020G corresponding to 21/08/1441H
- Dividends will be paid within (15) business days post the eligibility date.

The Fund Manager wishes to remind the unit holders to update their bank accounts to ensure depositing the outstanding dividend to their accounts directly.
 

Riyad Capital announces the Availability of the annual Financial Results for Riyad REIT for the year ended on 31/12/2019 to the public

Riyad Capital announces the availability of the annual financial results for Riyad REIT, and below is the summary of the annual financial results for the year ended 31/12/2019:

- Net Assets (based on fair value) at the end of the period SAR 1,658,025,000
- Total expenses and fees for the period (SAR 53,579,718)
- Net income for the period SAR 70,884,571
- Number of units available at the end of the period 171,697,101 units
- Net Asset Value per unit (based on fair value approach) SAR 9.66
- Total Revenue for the period is SAR 181,201,243
- Funds From Operations for the period SAR 92,864,569
- The yield for the period 5.7%

Please click here for the Annual Financial Results
 

Riyad Capital announces the occurrence of an event in Riyad REIT (Signing a hotel management agreement with Marriot International to operate Burj Rafal Hotel)

 

Riyad Capital (“the fund manager”) announces signing an agreement between Riyad REIT and Marriott International to operate its Burj Rafal Hotel in Riyadh under the name (JW Marriot Riyadh). The operation of the hotel will be handed over to Marriott in Q1 2020. The hotel will undergo an improvement plan which includes the introduction of new dining concepts such as Kahwet Al Mandaloun and JW Grill. Following the renovation period, which is expected to be completed this year, the property will be rebranded as a JW Marriott Hotel - marking the debut of the brand in Saudi Arabia.

 

Working with JW Marriott to operate the asset (a luxury brand of one of the largest hotel operators) will deliver an unprecedented level of service and accommodation in Riyadh given the hotel’s diversified amenities and location. The hotel will represent the hospitality element within the master plan of the future project "Capital Gate" that will be developed through Riyad Capital – The fund manager of Riyad REIT.  Capital Gate will offer more than 100,000 square meters of office, retail, and entertainment space that will be connected to the Hotel – offering a true mixed-use atmosphere.”

It is expected that this will have a positive impact on the Fund results.
 
 

Riyad Capital Announces the Availability of Riyad REIT Semi-Annual Valuation Reports for the Second Half of 2019

 

Riyad Capital announces the availability of Riyad REIT annual valuation reports for the Second Half of 2019. The reports are conducted by two independent and licensed valuers by Saudi Authority for Accredited Valuers: Barcode and Valustrat.

 

For a copy of the reports, please click the below link:

http://www.riyadcapital.com/ar/asset-management/public-funds/reits/riyad-reit
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 December 2019

 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 31 December 2019

Please click here to view the quarterly fact sheet 

 
 

Riyad Capital announces the occurrence of an event in Riyad REIT – Soft opening of Ascott Corniche Alkhobar

Riyad Capital announces the soft opening of Ascott Corniche Alkhobar that is developed and owned by Riyad REIT. The hotel comprises luxury serviced apartments, a fitness center, meeting facilities and other amenities. The hotel will house Al Mandloun restaurant which will be managed by the hotel via a franchise agreement. Al Mandaloun outlet will benefit from its visibility on one of the key roads of Khobar – Prince Turki Street and will enjoy spectacular views of the city and the sea side. The restaurant is expected to open its doors to the public in H2, 2020. The strategic partnership with Ascott – one of the leading operators for luxury serviced apartments supports the REIT’s objective to achieve periodic returns to unit holders. It is envisioned that the hotel will capitalize on its strategic location which is adjacent to several touristic hubs, corporate headquarters and Dr. Suleiman Al Habib Hospital.

It is expected that the move towards full hotel opening will have a positive financial impact on the Fund.


 

Riyad Capital Announces Material Development Relating to Riyad REIT) investing SAR 350.8 million in a diversified U.S. real estate portfolio consisting of three Class A office properties)

 

Riyad Capital has announced that Riyad REIT has invested SAR 350.8 million in a U.S. property portfolio consisting of three office properties under long-term leases to strong investment grade tenants.  The opportunity allows Riyad REIT to benefit from stable, yielding, Class A office assets, diversified among top U.S. cities: San Francisco, Dallas Metro, and Washington D.C. (metro).  The Properties are as follows:

  • 350 Rhode Island: Class A office building 98% leased to the City of San Francisco (investment grade) and 2% leased to Starbucks (investment grade) located in San Francisco with a 14-year lease term.  The Property is 11,808 square meters and is surrounded by the world’s most recognized technology companies.  San Francisco Bay Area is considered among the strongest office markets in the U.S. and has the second highest number of Fortune 500 companies in the country.
  • Pioneer Headquarters: Newly built Class A office building 100% leased to Pioneer Natural Resources (an investment grade Fortune 500 company) under a 20-year lease term.  The Property is 104,555 square meters and is located in the Dallas Metropolitan Area in the upscale Las Colinas – which is the location of global and regional headquarters of Fortune 500. Dallas is the second fastest growing city in the U.S. and has the third highest number of Fortune 500 companies in the country.
  • Two Washingtonian: Class A office building 100% leased to Leidos Holding (an investment grade Fortune 500 company considered one of the largest government contractors) under a 13-year lease term.  The Property is 27,287square meters and is located in the Washington DC Metropolitan Area within the bio-technology Corridor – one of the top tech/biotech clusters in the United States.  The Washington DC Metropolitan area is the 5th largest metro in the U.S. and largest relative to government related firms and institutions.

The investment is expected to generate an annual net yield of 10% to Riyad REIT unitholders. The yield is net of all expenses, fees, and projected taxes.  Based on the portfolio’s projections, Riyad REIT is expected to generate an incremental profit of SAR 0.12 per unit annually net of financing costs.

 
 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 September 2019

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 September 2019

 

Please click here to view the quarterly fact sheet

 
 

Riyad Capital Announces a Change in the membership of the Board of Directors of Riyad REIT Fund
Riyad Capital announces a change in the board of directors of Riyad REIT Fund due to the resignation of the Board Member Mr. Faraj Saad AlGabbani (Dependent Board Member) and appointing Mr. Abdulrahman Abdulaziz Al-Mashal (Dependent Board Member) on 06/01/1441H corresponding to 05/09/2019G
The Fund Board of Directors will have the following members after the change:
1. Mr. Adel Ibrahim Alateeq – Chairman
2. Mr. Raed Ghaith AlBarakati– Dependent Board Member
3. Mr. Abdulrahman Abdulaziz Al-Mashal – Dependent Board Member
4. Mr. Walid Ali AlGasim – Independent Board Member
5. Mr. Mohammed Abdulhamid AlMubarak - Independent Board Member

You can find the updated Fund’s terms and conditions by clicking here


 

Riyad Capital Announces the Update of Riyad REIT Fund Terms and Conditions

Riyad Capital announces the update of Riyad REIT Fund terms and conditions as of 06/01/1441H corresponding to 05/09/2019G, You can find the updated Fund’s terms and conditions by clicking here
 


 

Riyad Capital announces the distribution of dividends to Riyad REIT Fund Unit Holders
Riyad Capital announces the distribution of cash dividends to Riyad REIT Fund unit holders for the first half of 2019 as follows:
- Total dividend distribution of SAR 41,207,304.24
- Cash distribution will be based on 171,697,101 existing units;
- Dividend distribution amount is SAR 0.24 per unit, which represents 2.52% of the initial price; (initial price was calculated based on the current paid-up capital divided by issued shares).
- Dividend represents 2.44% of the Net Asset Value as of 30/06/2019, corresponding to 27/10/1440H.
- The eligibility of dividends shall be for the unit holders registered in the registers of the Securities Depository Center by the closing of Thursday, 29/08/2019 corresponding to 28/12/1440H (end of trading day, Tuesday, 27/08/2019 corresponding to 26/12/1440H)
- Dividends will be paid within (10) ten business days post the eligibility date.

The Fund Manager wishes to remind the unit holders to update their bank accounts to ensure depositing the outstanding dividend to their accounts directly.
_________________________________________________________________________

 

Riyad Capital announces the Availability of the Interim Financial Results for Riyad REIT for the Period Ending on 30/06/2019 to the public

Riyad Capital announces the availability of the interim financial results for Riyad REIT, and below is the summary of the interim financial results for the period ending on 30/06/2019:

- Net Assets (based on fair value) at the end of the period SAR 1,689,300,392
- Total expenses and fees for the period (SAR 30,853,360)
- Net income for the period SAR 33,644,216
- Number of units available at the end of the period 171,697,101 units
- Net Asset Value per unit (based on fair value approach) SAR 9.84
- Total Revenue for the period is SAR 89,079,712
- Funds From Operations for the period SAR 41,214,908
- The yield for the period 2.4%

Please click here for the Interim Financial Results
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Addendum announcement from Riyad Capital regarding the Annual Report for the period ending 31 December 2018 for Riyad REIT

Further to the announcement of Riyad Capital Company published on 11/04/2019 corresponding to 06/08/1440H, Riyad Capital would like to clarify that Riyad REIT’s Annual Report for the period ending 31 December 2018 has been updated to include a breakdown of the REIT’s operational income, and there is no effect from the change.
_________________________________________________________________________

 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 June 2019 

Riyad Capital announces the availability of the quarterly Fact Sheet of Riyad REIT for the period ending 30 June 2019 (Click here)
_________________________________________________________________________

 

Riyad Capital Announces the Availability of Riyad REIT Semi-Annual Valuation Reports for the First Half of 2019

Riyad Capital announces the availability of Riyad REIT annual valuation reports for the First Half of 2019. The reports are conducted by two independent and licensed valuers by Saudi Authority for Accredited Valuers: Barcode and Valustrat.

For a copy of the reports, please click on the valuation reports tab.

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