Al Mashaar REIT tenant’s rent waiver request to negatively impact H1 2020 dividend

The rent waiver request from Eskan Development and Investment Co., a tenant of Al Mashaar REIT Fund’s properties, is expected to have a negative impact on dividend distribution for H1 2020, according to Muscat Capital Co.

The fund manager said in a bourse statement that it is following up on the current events, as all the precautionary measures still continue to be in place.

The firm also indicated that it will discuss the matter with the tenant to reach an agreement that meets the interests of all parties.

It is presently difficult to determine the full impact on the fund’s performance, as there is still uncertainty over the timeframe for COVID-19 precautionary measures, Muscat Capital noted, adding that any further developments will be revealed in due course.

According to data compiled by Argaam, Muscat Capital received yesterday a notification from Eskan Development and Investment Co., requesting to waive rents due from March 1, 2020.

The request came on the back of impacted rent returns affected by the precautionary measures issued by the relevant government authorities to combat coronavirus outbreak.