Musharaka Capital Co., the fund manager of Musharaka REIT Fund, said the Kingdom's precautionary measures to curb the COVID-19 outbreak did not impact the fund's most properties, according to a bourse statement.
"These properties were leased by binding and long-term contracts," the statement said, adding that if these precautionary measures sustain to beyond H1 2020, revenues will be materially impacted.
The fund lately received several requests from real estate tenants to either reduce, reschedule or suspend due rents of properties accounting for less than 20% of the fund's revenue, during the COVID-19 precautionary measures period.
The firm also indicated that it is presently limiting the requests received from the tenants to study each application before making a decision in accordance with the Kingdom’s related laws and regulations.
Hypermarkets and restaurants in the fund’s commercial compounds provide groceries for residents of Riyadh, Dammam, Jubail and Al-Kharj.
The fund manager said the relevant financial impact is still difficult to determine, as there is still uncertainty over the timeframe for COVID-19 measures.
Any further material developments will be revealed in due course, the statement added
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