Jadwa Investment , one of the leading investment companies in Saudi Arabia and the region, announced SAR 37.3 million to unit holders, based on the Fund’s performance during the fourth quarter of 2023. This announcement reflects the Fund’s strong and stable financial performance and its ability to generate regular returns for investors.
According to the official statement issued and published on the Saudi Stock Exchange (Tadawul), these profits will be distributed based on 186.5 million outstanding units, resulting in a profit of SAR 0.20 . These distributions represent 1.66% of the fund's net asset value based on the latest reported value. The entitlement date for cash distributions for unit holders registered in the Securities Depository Center's records is set for the end of Tuesday, February 10, 2024, with distributions to be paid within 20 business days from the entitlement date.
General context and importance of REITs in Saudi Arabia
Real Estate Investment Trusts (REITs) are a vital investment tool in the Saudi financial market, offering investors the opportunity to invest in a diversified portfolio of income-generating real estate assets, such as commercial and residential complexes, offices, and hotels, without the need to purchase properties directly. This sector has witnessed remarkable growth in the Kingdom since its inception, supported by regulatory frameworks from the Capital Market Authority and aligned with the goals of Saudi Vision 2030 , which aims to diversify the economy, deepen the financial market, and attract investments.
Expected impact and importance of distributions for investors
The announcement of a cash dividend distribution by a fund the size of Jadwa REIT Saudi Arabia carries several positive implications. Domestically, this announcement reinforces investor confidence in the fund and the REIT sector as a whole, underscoring its appeal as an investment option for those seeking regular and stable income. It also reflects the success of the fund's strategy in managing its real estate assets with high efficiency and its ability to generate sustainable cash flows.
Regionally, the strong performance of Saudi REITs contributes to solidifying the Saudi financial market's position as one of the most important markets in the region, attracting further local and foreign liquidity. The stability of dividend distributions indicates the maturity and stability of the Kingdom's real estate sector, a key pillar of the non-oil economy. Jadwa REIT Saudi is a prominent fund listed on Tadawul, boasting a geographically and sectorally diversified real estate portfolio within the Kingdom, thus mitigating risk and aiming for long-term growth in returns.
