Total Listed REIT Funds Net Assets, around SR15.6 bln

Net assets of the 17 REIT funds reached SR15.57 billion, a decrease of 3.06% compared to net assets of these funds, at the end of the same period in 2020, a difference of SR491.6 million, in figures, according to quarterly data from for the listed in the financial market, for Q3-2021.

The state intends to offer government REIT funds in the financial market, providing a strong incentive to invest in listed REIT funds, as talks between the Capital Market Authority and the State Real Estate Authority were recently announced about the possibility of including a government REIT fund that acquires government real estate.

Others provide similar funds, but REITs have something that sets them apart from other real estate investment funds, which we’ll go over later.

“Tadawul” income-generating real estate funds are an alternative to speculation, particularly for those who prefer regular returns, because the purchase of units in these funds may eliminate the need to invest in real estate in the absence of the necessary “cash,” especially since some of these funds generate returns on a regular basis. As a result, the inclusion of such real estate in the form of fund units makes the real estate owned by the funds open to anybody who wants to invest in it.

The net asset value of the fund units at the end of Q3-2021 (mln Riyals)
End of Sep-2020 End of Sep 2021 Differ Differ % Number of units (in mln) Net Asset Value per Unit (SR)
RIYAD REIT 1,670.00 1,646.15 (23.84) -1.43% 171.70 9.59
ALJAZIRA REIT 95.96 85.38 (10.58) -11.02% 11.80 7.24
JADWA REIT 628.30 566.70 (61.60) -9.80% 66.00 8.59
TALEEM REIT 541.94 545.45 3.51 0.65% 51.00 10.70
Al Maather REIT 565.83 542.85 (22.98) -4.06% 61.37 8.85
MUSHARAKA REIT 899.50 870.08 (29.41) -3.27% 88.00 9.89
MULKIA REIT 667.22 675.12 7.90 1.18% 68.11 9.91
Al Maather REIT 541.30 495.60 (45.70) -8.44% 57.24 8.66
AlAhli REIT 1,316.21 1,285.99 (30.21) -2.30% 137.50 9.35
DERAYAH REIT 1,007.13 940.67 (66.46) -6.60% 107.51 8.75
Al Rajhi REIT 1,526.79 1,276.94 (249.85) -16.36% 161.86 7.89
Jadwa REIT Saudi 1,767.82 1,758.05 (9.77) -0.55% 158.00 11.13
SEDCO CAPITAL REIT 549.31 541.07 (8.24) -1.50% 60.00 9.58
SWICORP WABEL REIT 969.05 936.86 (32.19) -3.32% 118.00 7.94
MEFIC REIT 717.35 558.26 (159.09) -22.18% 73.28 7.62
Bonyan REIT 1,685.25 1,646.91 (38.34) -2.28% 162.88 10.11
ALKHABEER REIT 910.82 1,196.03 285.21 31.31% 141.01 8.48
Total 16,059.77 15,568.13 (491.64) -3.06%

The assets of REIT funds listed on the Saudi market were diverse in terms of geographical distribution or asset classes, as the assets owned by these funds were spread across many governorates in the Kingdom, although they were more concentrated in Riyadh, Jeddah, and Makkah, and Riyadh was the most fortunate among the Saudi cities, where most of the funds own real estate assets in them, at the Kingdom level, while outside.

At the end of September, the 17 funds controlled 177 properties, with Diriyah REIT having acquired the most, with 26 buildings, followed by Riyadh REIT with 23 properties.

They varied in real estate categories, including educational, health, hospitality, hotels, warehouses, commercial centers, and residential complexes, as well as restaurants and entertainment, all of which are sectors of interest to the state, particularly the Public Investment Fund, in line with Vision 2030’s goals.

Geographical distribution of fund assets, classes, number of properties
Geographical distribution of real estate Asset class Number of properties
RIYAD REIT Riyadh – Jeddah – Dammam – Khobar – America – Belgium Hotels – Towers – University – Offices 23
ALJAZIRA REIT Jeddah Commercial warehouses 6
JADWA REIT Makkah Hotels – Real estate under development – Retail building 5
TALEEM REIT Riyadh Schools 3
Al Maather REIT Riyadh – Khobar Offices – Commercial Buildings – Schools – Hotels – Warehouses 15
MUSHARAKA REIT Central Region – Eastern Province – UAE Residential and commercial complexes – showrooms – hospitality 12
MULKIA REIT Riyadh – Jeddah – Khamis Mushait – Dammam Commercial activity – industrial – office – restaurants – exhibitions – hospitality and hotels 7
MASHAAR REIT Makkah Residential towers 4
AlAhli REIT Jeddah – Riyadh Malls – Hotels – Towers 4
DERAYAH REIT Riyadh – Khobar – Dammam – Jubail – Al Ahsa – Jeddah Schools – Towers – Warehouses – Medical Center – Complexes 26
Al Rajhi REIT Riyadh – Khamis Mushait – Jeddah – Khobar – Dammam Schools – Hospitals – Warehouses – Complexes 18
Jadwa REIT Saudi Riyadh – Khobar – Dammam
Hotels – Warehouses – Offices – Schools – Colleges 9
SEDCO CAPITAL REIT Riyadh – Khobar – Dammam – Jeddah Complexes – Buildings – Hypermarkets – Amusement parks – Hotels 11
SWICORP WABEL REIT Riyadh – Tabuk – Dawadmi – Hafar Al-Batin Malls 4
MEFIC REIT Riyadh – Makkah – Jeddah – Dubai Residential complexes – Commercial Complexes – Malls 7
Bonyan REIT Riyadh – Madinah – Jazan – Abha – Dubai Residential complexes – Commercial centers – Hospitality – Office Tower 11
ALKHABEER REIT Riyadh – Tabuk – Jeddah Warehouses – colleges – commercial centers – complexes 12
Total 177

Cash dividends distributed by the listed REIT funds during the first half of 2021 grew by 26% to 392.2 million riyals, compared to 310.91 million riyals at the same time last year, with 12 funds out of 17 making distributions.
Feasibility of REIT Al-Haramain, Mashaer REIT, Swicorp, and Apple REIT did not announce any payouts, and the last fund manager announced the delay of dividends for the year 2020 to the second half of 2021, after reviewing the fund’s liquidity needs in 2021.
When compared to the same period last year, dividends issued to seven funds, including Al-Ahly Fund, Bonyan Fund, and Al-Khabeer Fund, climbed by 180 percent, 161 percent, and 130 percent, respectively.
While the education fund’s payouts and REIT’s participation both fell by 25% and 14%, respectively, While the MEFIC REIT fund released SR3.66 million, in the first half of 2021, it did not distribute in the same period the previous year.

Cash Dividends (Mln Riyals)
First half 2020 First half 202 Differ %
AlAhli REIT 17.19 48.13 180%
Bonyan REIT 20.00 52.12 161%
ALKHABEER REIT 13.29 30.50 130%
RIYAD REIT 34.34 46.36 35%
MULKIA REIT 6.81 8.85 30%
Jadwa REIT Saudi 56.88 61.62 8%
SEDCO CAPITAL REIT 18.30 18.30 0%
Al Rajhi REIT 45.32 45.32 0%
MUSHARAKA REIT 30.80 26.40 -14%
TALEEM REIT 16.32 12.24 -25%
DERAYAH REIT 51.67 38.70 -25%
MEFIC REIT – 3.66
310.91 392.20 26%
ALJAZIRA REIT Annual distributed
JADWA REIT ALHARAMAIN Not distributed
Al Maather REIT Annual distributed
MASHAAR REIT Not distributed
SWICORP WABEL REIT Not distributed

Total financing facilities given to the real estate investment funds traded industry amounted to SR7.02 billion, in the first half of 2021, up 2% from 2020, Bloominvest research concluded.

The loan is for SR149.9 million and will be due on March 9, 2021. It is the fund’s first loan. Loans from the Bonyan REIT Fund climbed by 102% to SR385.08 million.
The largest outstanding loan, worth SR867 million, belongs to the Riyad REIT Fund. Aljazira REIT, on the other Bank facilities indicate a real estate fund’s potential to grow by capitalizing on future opportunities.

Lower debt-to-total-assets ratios indicate a stronger potential to borrow and grow in the future. As an alternate source of funding, some funds turn to growing capital rather than increasing leverage.

Since the beginning of 2017, the Saudi market has seen the inclusion of 17 real estate traded funds, after the Capital Market Authority launched an investment product in 2016 that combines real estate investment and financial market trading, which is an investment fund in which several investors participate in order to profit from the fund’s related properties.

According to the report, the pace of rise in the real estate funds sector index (up 15.66%) was not at the same pace as the general index of the main market (up 38.52%) and was close to the pace of rise in the real estate management and development sector index (up 16.23%) during the first nine months of 2021 and to be completed on September 30, 2021.

During the first nine months of this year, the 17 funds listed on the financial market gained SR2.86 billion, in market value.

Al-Ahly REIT 1, with market gains of SR688 million, since the start of the year, was followed by Al-Rajhi REIT, with market gains of SR463 million, and Riyadh REIT, with a value of SR354 million, bringing the market gains of the three funds to (SR1.5 billion), or 52.6% of the market gains for all sector funds.

Market value evolution of traded funds, since the beginning of 2021, Listing (Mln Riyals) Unit Price (Closing September 30th (SR) End of 2020 (SR) Market value at the end of September 2021 Market value at the end of 2020 Market value at the time of listing Listing date
RIYAD REIT 10.56 8.50 1,813.12 1,459.43 1,716.97 11/13/2016
ALJAZIRA REIT 26.80 22.84 316.24 269.51 118.00 15/2/2017
JADWA REIT ALHARAMAIN 8.89 7.47 586.74 493.02 660.00 4/30/2017
TALEEM REIT 14.70 12.88 749.70 656.88 510.00 5/30/2017
Al Maather REIT 9.18 8.90 563.38 546.19 613.70 8/22/2017
MUSHARAKA REIT 10.06 9.83 885.28 865.04 880.00 10/1/2017
MULKIA REIT 10.24 9.05 697.43 616.38 681.09 11/5/2017
MASHAAR REIT 10.18 8.00 582.70 457.92 572.40 1/18/2018
AlAhli REIT 13.92 8.92 1,914.00 1,226.50 1,375.00 1/8/2018
Diriyah REIT 13.34 11.20 1,434.14 1,204.08 1,075.07 3/26/2018
Al Rajhi REIT 12.56 9.70 2,032.92 1,570.01 1,618.57 3/20/2018
Jadwa REIT Saudi 14.18 14.00 2,240.44 2,212.00 1,580.00 2/11/2018
SEDCO CAPITAL REIT 13.30 9.35 798.00 561.00 600.00 5/1/2018
SWICORP WABEL REIT 8.02 7.41 946.36 874.38 1,180.00 8/6/2018
MEFIC REIT 8.01 7.21 586.95 528.33 732.77 11/13/2018
Bonyan REIT 10.18 8.88 1,658.13 1,446.38 1,628.81 7/25/2018
ALKHABEER REIT 9.68 9.39 1,364.97 1,324.07 1,410.09 3/20/2019
19,170.50 16,311.13 16,952.46