Riyad REIT Fund — Capital/Financing Update 2020

Sep 1, 2020

Riyad Capital Announces the Occurrence of an Event Relating to Riyad REIT (Investing SAR 45 million in a U.S. office building in the United States of America)

4330 · 01/09/2020 15:40:33 · Announcement #60283 · View on Saudi Exchange

Riyad Capital Announces the Occurrence of an Event Relating to Riyad REIT (Investing SAR 45 million in a U.S. office building in the United States of America)

4330

RIYAD REIT

-2.71 %

1442/01/13     01/09/2020 15:40:33

Element List	Explanation
Description of the Event	Riyad Capital ("the Fund Manager") has announced that Riyad REIT has invested SAR 45 million in a U.S. office building on land area of 84,174 square meters and net leasable area of 24,491 square meters located in the Dallas-Forth Worth Metro Area, United States of America.

The Property is the FedEx Office Headquarters, a Class A office building located in Legacy Business Park – which is widely recognized as one of the major business hubs of the Dallas area and includes the Toyota’s North American headquarters and regional offices for JPMorgan Chase, USAA, Bank of America, Coca Cola, Pepsi, Fannie Mae and many other Fortune 500 companies.

The Property is leased to FedEx Corporation on a long-term lease. FedEx is an investment-grade tenant and is one of the largest logistics and delivery services companies worldwide, ranked 47 on Fortune 500. The rapid growth of e-commerce has placed logistics and delivery services on the forefront of connecting consumers with online products and is expected to be a key growth sector over the long-term. The Impact Caused by the Event The investment is expected to generate an average annual net yield of 8.50% to Riyad REIT unitholders over a 6-year investment period. 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 more than SAR 0.015 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.