Riyad REIT Fund — Earnings Release 2016

Feb 22, 2017

Riyad REIT Fund announces the annual financial results for the period ending on 31-12-2016

4330 · 22/02/2017 15:45:37 · Announcement #45686 · View on Saudi Exchange

Riyad REIT Fund announces the annual financial results for the period ending on 31-12-2016

Element	Current year	Previous year	% Change
Net profit (loss)	9,887	-2,984	-
Earning or loss per share, Riyals	0.2	-0.06	-
Gross profit (loss)	21,481	2,632	716.15
Operational profit (loss)	21,481	2,632	716.15

*All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The reasons behind recording growth in net income this year compared to last year is due to: Stabilizing occupancies of properties acquired in 2015 . 2016 revenues reflect full year operational revenues of properties acquired in 2015. 2016 revenues reflect partial operational revenues of properties acquired in 2016, where Riyad REIT acquired three properties: Al Shatea (February 2016), Alfursan Towers (March 2016), and Ascott Tahlia in Jeddah (September 2016). Ascott Tahlia in Jeddah represents the largest component of overall revenues
Other notes	Revenues for the year reached SAR 23.67 million compared to SAR 3.41 million of last year showing an increase of about 594%. Revenue growth was mainly driven by stabilizing occupancies of properties acquired in 2015 as well as full year operational revenues of properties acquired in 2015, and partial operational revenues of properties acquired in 2016. Given that major acquisitions were made throughout 2016, the financial statements for year end 2016 do not reflect full year of operational revenues. With all acquisitions up to date, the REITs current rent roll totals SAR 34 million of revenues for the full operating year of 2017 (compared to SAR 22 million in 2016). The REITs development project the Ascott Corniche Al Khobar is expected to open during 2018, and is expected to further diversify the REITs revenues in the future. Operationally, the REIT is comprised of 84 tenants, has achieved an overall occupancy of 94%, and has a weighted average remaining lease term on the portfolio of 7.3 years. As of December 31, 2016 unitholders equity Book value (no minority interest) reached SAR 481.90 million vs. SAR 497.02 million as of December 31, 2015 showing a decrease of 3%. As of December 31, 2016 unitholders equity Fair value (no minority interest) reached SAR 500.28 million vs. SAR 499.28 million as of December 31, 2015 showing an increase of 0.20%.

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