Saudi Fransi Capital, in its capacity as manager of the Education REIT Fund, announced its decision to distribute cash dividends totaling SAR 8.67 million to the fund's unit holders for the fourth quarter of 2023, extending from October 1, 2023 to December 31, 2023. This announcement reinforces investor confidence in the fund's performance and financial stability.
Background on the REIT Education Fund and its importance
The Education REIT Fund is the first publicly traded real estate investment trust (REIT) specializing in the education sector in the Kingdom of Saudi Arabia. It is listed on the Saudi Stock Exchange (Tadawul) to provide investors with the opportunity to participate in the ownership of income-generating real estate assets in a vital and strategic sector. The fund's strategy is based on acquiring educational buildings leased under long-term contracts to reputable operators, thus providing stable and regular cash flows, which positively impacts its ability to distribute periodic dividends.
The impact of dividends on investors and the Saudi market
These cash distributions demonstrate the success of the fund's operating model and the strength of its real estate assets. For investors, these dividends provide a continuous return on their investments, making the fund an attractive option for those seeking passive income and sustainable growth. More broadly, Real Estate Investment Trusts (REITs) like Taaleem REIT contribute to deepening the Saudi financial market and diversifying available investment options, in line with the Kingdom's Vision 2030 of developing the financial sector and enhancing the private sector's role in the economy. This positive performance also highlights the promising opportunities in the education real estate sector, which is experiencing increasing growth thanks to the government's focus on developing education and the rising demand for high-quality educational services.
Profit distribution details
According to the statement issued on the Saudi Stock Exchange (Tadawul), profits will be distributed based on 51 million outstanding units. The profit per unit is SAR 0.17 . These distributions represent 1.06% of the fund's net asset value as of December 31, 2023. The entitlement date for the profits is set for the close of trading on February 9, 2024, and the distributions will be paid to eligible shareholders within 15 business days of the entitlement date. This commitment to dividend distribution reflects the fund's clear and transparent policy towards its unit holders.
