Description

Al Rajhi REIT Fund (Al Rajhi REIT) is a Shariah-compliant, closed-ended real estate investment fund whose units are actively traded. Its authorization, including the offering of its units, was granted by the Saudi Arabian Capital Market Authority (CMA) on December 18, 2017 (30/3/1439H). Operating strictly in accordance with the CMA's Real Estate Investment Funds Regulations and REIT Instructions, Al Rajhi REIT is listed and traded on Tadawul. The fund was initially established with a capital of SAR 1,222,006,090, representing 122,200,609 units, each priced at SAR 10. An additional 39,656,248 units were issued in the fourth quarter of 2019 at SAR 8.8 per unit, following an increase in its total asset value, bringing the total number of issued units to 161,856,857. Al Rajhi REIT has a projected lifespan of 99 years, extendable by the Fund Manager with the concurrence of both the Fund Board and the CMA. The primary investment goal of Al Rajhi REIT is to acquire income-generating real estate assets. The fund commits to distributing at least 90% of its net income as semi-annual cash dividends to investors, typically at the end of February and August each year. However, capital gains realized from the divestment of real estate properties are reinvested into new assets to enhance unit holder value, rather than being distributed. The fund currently holds 18 properties, from which it distributes dividends.