‎Saudi REITs dividends rise 22% to SAR 384 mln in H1 2021

‎Saudi REITs dividends rise 22% to SAR 384 mln in H1 2021

‎

The dividend distributions by Tadawul-listed real estate investment traded funds (REITs) increased 22% year-on-year (YoY) to reach about SAR 384 million in H1 2021, through 12 funds out of 14 funds that pursue the dividend policy on a quarterly and semi-annual basis, data compiled by Argaam showed.

Consequently, the total cash dividends distributed by the funds since the sector’s inclusion in the Saudi bourse will reach nearly SAR 3 billion by the end of June 2021.

The increase in cash dividends was driven by the gradual recovery of the REITs sector from the COVID-19 pandemic and the return to normalcy, which led to the stability and recovery of operating rates for properties. In addition, the funds reported a rise in rental income and strategic expansion through recent acquisitions.

Since the beginning of this year, the commercial, retail and hospitality sectors have benefited the most from the easing of precautionary measures.

A total of seven REIT funds saw higher dividends in H1 2021, mainly Alkhabeer REIT Fund’s dividend distribution more than doubled to nearly SAR 30.5 million on the back of an increase in its real estate assets. Meanwhile, the dividends by Al Rajhi REIT Fund and SEDCO REIT Fund remained unchanged.

MEFIC REIT Fund distributed