Musharaka REIT Fund Announces Its Profit Distribution Policy
Objective:
The primary investment objective of Musharaka REIT Fund is to provide periodic income to unit holders by investing in income-generating leased real estate assets or assets that are expected to generate income in the future. The distribution policy aims to clarify the expected income for unit holders.
Distribution Policy:
In line with the terms and conditions of Musharaka REIT Fund, the profit distribution policy is based on distributing the net profit generated from operational activities to unit holders on a semi-annual basis.
However, this policy may change in the future due to several factors, including:
- The fund retaining cash for a specific investment.
- A significant change in the investment strategy of the fund.
- Regulatory changes in laws and regulations requiring an adjustment in the distribution policy.
Based on the current leasing contracts of the Musharaka REIT Fund, expected semi-annual cash distributions to unit holders will be SAR 0.35 (35 halalas) per unit, resulting in a total expected annual distribution of SAR 0.70 (70 halalas) per unit.
It is important to note that these distributions do not account for any future acquisitions financed through bank facilities that the fund may obtain. The fund manager aims to increase annual cash distributions if net annual profits increase due to:
- Acquiring usufruct rights.
- Improving rental income from the fund’s leased properties.