SEDCO Capital, the fund manager for SEDCO Capital REIT Fund, explained the details of rent revision requests it received from several tenants affected by the COVID-19 precautionary measures until now, and how it will manage those requests.
The fund manager said in a bourse statement on Sunday that the total value of additional requests from tenants for a temporary reduction amounted to 14.80% of total annual rents of the fund. The rejected requests were equivalent to 0.9% of total income.
Therefore, the total value of requests reached approximately 1.8% of the total income, the fund manager said, noting it has not yet received any contract termination requests.
Thus, the percentage of total requests received to consider a temporary reduction of contractual obligations and/or suspension of rental to date stands at nearly 17.2% of the fund's total annual rental income, with total declined requests at 5.6%.
The number of requests received from tenants affected by the precautionary measures amounted to 11.1% and 0.5% of these requests have been dealt as per the terms explained in April.
The fund manager has taken the following actions on the requests received:
- Tenants excluded from precautionary measures were notified of the rejection of the applications received.
- Tenants have been notified that the impact of these actions and the amount of actual damage, if any, will be assessed on a case by case basis, and in accordance with regularity and contractual procedures.
- The fund manager will follow the same procedures with future requests in accordance with the above-mentioned principles.
In addition, the fund manager clarified that the values disclosed do not take into account any other requests that it may receive in the future.
On dividend distribution, SEDCO Capital said it is working hard to maintain dividend continuity in accordance with the fund’s terms and conditions.
However, the repercussions of the precautionary measures are still ongoing and it is not currently possible to assess the financial impact on the dividend distribution.
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