Mulkia Gulf Real Estate REIT Expects 3.90% Decrease in Jeddah Dinar building Revenue in 2022

Mulkia Gulf Real Estate REIT Company announced on Wednesday that during the previous period the fund manager has negotiated the due amounts with Jeddah Dinar building tenant and reached a settlement agreement that has been signed and attested by the arbitral tribunal as follows:

– Granting the tenant, a discount for the periods of Corona and previous years, and another conditional discount to be granted if the tenant abides by the agreed payments.

– Scheduling the payment of due amounts in several installments.

– Registering the lease agreement in EJAR platform, and amending the rent of the property to become as follows:

– SR6,970,348 for the leasing year that begins on 19.10.2021 and ends on 18.10.2022.

– SR8,463,994 for the next two years, the first year begins in 19.10.2022 and ends in 18.10.2023 & the second year begins on 19.10.2023 and ends on 18.10.2024.

The company indicated that it is expected based on the above information of the signed settlement that the cash flow of the fund will increase through collecting the due payments, and on the other side it is expected that the related property revenue will decrease for the coming period with a percentage of 3.90% from the expected revenue of the year 2022 and with a percentage of 1.95% of the expected revenue of the years 2023/2024.

“During the previous periods the fund manager has allocated a provision of credit loss that covers the discounted amounts mentioned in the settlement agreement”, the company said.

This comes with reference to Mulkia Investment Company announcement regarding the occurrence of a specific event that has been published in 14.01.2021, the company concluded.