Musharaka REIT announces dividend distribution policy

06/11/2017 09:44 AST

Musharaka REIT announces dividend distribution policy compliant with the fund's terms and conditions.

Objective
The primary investment objective of Musharaka REIT is to generate a periodic income through investing in developed and investable real estate assets that are expected to generate periodic rental income in the future. The policy aims to explain the expected income from the fund to unitholders.

Dividend Distribution Policy
In compliance with the fund's terms and conditions, the fund aims to distribute the available net profit from its operations in cash to the unitholders on a semi-annual basis. This dividend policy may change in future due to different factors reasons including but not limited to: -Any significant change in the fund investment plan that requires the Fund to retain cash, -Any major change in the fund's strategy,
-or any change in implementing laws, rules and regulations that may necessitate a change in the dividend distribution policy.

Accordingly, the existing lease contracts signed by the fund would generate an expected semi-annual cash dividends to unitholders of S.R 0.35 (35 Halalas) per unit and hence an expected gross annual cash dividends to unitholders of S.R 0.70 (70 Halalas) per unit. It should be noted that this does not take into account any acquisition that the fund may finance through debt facility in the future.

However, the fund manager seeks to increase the annual dividends if the fund's annual net profit increases as a result of acquisition of new properties or improvement of income from existing properties.

Tadawul