SEDCO Capital REIT says discounts to tenants affected by COVID-19 amounted to 9.9% of revenue

SEDCO Capital, the fund manager for SEDCO Capital REIT Fund, said the total value of discounts granted to date to tenants affected by the COVID-19 pandemic represents approximately 9.87% of the fund's total annual rental income.

This is expected to negatively impact 2020 dividends distributions, SEDCO Capital said in a statement to Tadawul.

SEDCO Capital REIT Fund’s board members approved the discount policy for rent revision requests it received from several tenants amid the COVID-19 pandemic.

The policy sets out terms to deal with such requests in a manner that protects the interests of both unitholders and tenants, it said, adding that it focuses on analyzing the sector to which the tenant belongs, estimates a timeframe and sets the parameters for negotiations.

The fund manager adopted initiatives in conjunction with the abovementioned discount policy in order to maintain the level of liquidity and mitigate the negative impact of the pandemic, such as reducing the financing fee and improving the fund’s operational performance, the statement said.

The abovementioned values do not consider any future unforeseeable developments.

The fund manager will continue to monitor the situation and will announce about any material development.