Al Rajhi Capital , in its capacity as manager of Al Rajhi REIT, announced SAR 38.58 million , reflecting the fund’s strong financial performance and its commitment to achieving periodic returns for investors.
According to a statement published on the Saudi Stock Exchange (Tadawul) website, dividends will be distributed based on 275,607,498 outstanding units, with each unit receiving SAR 0.14 . These distributions represent 1.55% of the fund's net asset value. Thursday, February 12, has been set as the record date for dividends for unit holders registered at the close of business that day, and the amounts will be deposited into investors' accounts within 15 business days from the record date.
A look at Al Rajhi REIT Fund and its performance
Al Rajhi REIT is one of the leading real estate investment trusts (REITs) in the Saudi stock market, and it is Sharia-compliant. Listed on Tadawul, it aims to provide investors with the opportunity to participate in a diversified portfolio of income-generating real estate assets across the Kingdom. The fund's strategy focuses on acquiring high-quality properties in vital sectors such as retail, offices, education, and industrial, thereby generating stable and regular cash flows that positively impact periodic cash distributions.
The importance of REITs in the Saudi economy
This move comes amidst the remarkable growth of the Real Estate Investment Trusts (REITs) sector in Saudi Arabia, a key financial instrument supporting the goals of Saudi Vision 2030. These funds aim to deepen the financial market, provide new investment channels for citizens and residents, and increase the private sector's contribution to economic development. They also enhance transparency in the real estate sector and provide liquidity for investors, as their units can be easily traded on the stock market, making them an attractive investment option for those seeking recurring income and capital growth.
Expected impact of distributions on the market and investors
The decision by Al Rajhi REIT to distribute dividends not only represents a financial return for investors but also carries broader implications. Locally, this announcement reinforces investor confidence in the fund's performance and its management's ability to achieve sustainable returns. At the market level, the continued distribution by major funds like Al Rajhi REIT enhances the attractiveness of the Saudi REIT sector as a whole and may encourage further local and foreign investment. Furthermore, injecting over SAR 38 million in liquidity into the economy indirectly contributes to stimulating spending and investment, thus supporting the overall economic cycle.
In conclusion, this distribution underscores the success of Al Rajhi REIT’s strategy in efficiently managing its real estate assets and reflects the stable performance of the sectors in which it invests. Investors anticipate these distributions as a testament to the soundness and strength of their investments, further solidifying the fund’s position as a reliable investment option in the Saudi market.
