Riyad REIT Fund — Capital/Financing Update 2019

Dec 8, 2019

Riyad Capital Announces Material Development Relating to Riyad REIT (Investing SAR 350.8 million in a diversified U.S. real estate portfolio consisting of three Class A office properties)

4330 · 08/12/2019 15:27:41 · Announcement #56937 · View on Saudi Exchange

Riyad Capital Announces Material Development Relating to Riyad REIT (Investing SAR 350.8 million in a diversified U.S. real estate portfolio consisting of three Class A office properties)

4330

RIYAD REIT

-2.71 %

1441/04/11     08/12/2019 15:27:41

Element List

Explanation

Description of the Event

Riyad Capital has announced that Riyad REIT has invested SAR 350.8 million in a U.S. property portfolio consisting of three office properties under long-term leases to strong investment grade tenants. The opportunity allows Riyad REIT to benefit from stable, yielding, Class A office assets, diversified among top U.S. cities: San Francisco, Dallas Metro, and Washington D.C. (metro). The Properties are as follows:

1- 350 Rhode Island: Class A office building 98% leased to the City of San Francisco (investment grade) and 2% leased to Starbucks (investment grade) located in San Francisco with a 14-year lease term. The Property is 11,808 square meters and is surrounded by the world’s most recognized technology companies. San Francisco Bay Area is considered among the strongest office markets in the U.S. and has the second highest number of Fortune 500 companies in the country.

2- Pioneer Headquarters: Newly built Class A office building 100% leased to Pioneer Natural Resources (an investment grade Fortune 500 company) under a 20-year lease term. The Property is 104,555 square meters and is located in the Dallas Metropolitan Area in the upscale Las Colinas – which is the location of global and regional headquarters of Fortune 500. Dallas is the second fastest growing city in the U.S. and has the third highest number of Fortune 500 companies in the country.

3- Two Washingtonian: Class A office building 100% leased to Leidos Holding (an investment grade Fortune 500 company considered one of the largest government contractors) under a 13-year lease term. The Property is 27,287square meters and is located in the Washington DC Metropolitan Area within the bio-technology Corridor – one of the top tech/biotech clusters in the United States. The Washington DC Metropolitan area is the 5th largest metro in the U.S. and largest relative to government related firms and institutions. The Impact Caused by the Event The investment is expected to generate an annual net yield of 10% to Riyad REIT unitholders. The yield is net of all expenses, fees, and projected taxes. Based on the portfolio’s projections, Riyad REIT is expected to generate an incremental profit of SAR 0.12 per unit annually net of financing costs.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.