Al Rajhi REIT: Occupancy rate, market value decline in Q2 2023

Logo of Al Rajhi REIT Fund

The average occupancy rates for Al Rajhi REIT Fund’s properties stabilized at their lowest levels of 90% in Q2 2023, but declined 2% year-on-year (YoY).

The decrease was attributed to lower occupancy levels seen in two properties in Riyadh.

Anwar Plaza, a commercial and administrative retail center in Riyadh, fell to 5.3% in the second quarter of the year, compared to 44% a year earlier.

Rama Plaza declined by 3.7% to 58.3% by the end of Q2 2023. The property, located in Riyadh, has 30 commercial units and 15 administrative offices.

On the other hand, the occupancy levels for the rest of the properties remained stable at the same levels YoY.

The following table shows occupancy rates for the fund's properties since the Q1 2022:

Occupancy Rates of Fund’s Properties
Property		2022				2023
Property	Category	Q1	Q2	Q3	Q4	Q1	Q2
Oasis Mall	Retail	100%	100%	100%	100%	100%	100%
Rowad Alkhaleej International - Riyadh	Educational	100%	100%	100%	100%	100%	100%
Baraem Rowad AlKhaleej International	Educational	100%	100%	100%	100%	100%	100%
Rowad Alkhaleej International	Educational	100%	100%	100%	100%	100%	100%
NMC Specialty Hospital	Healthcare	100%	100%	100%	100%	100%	100%
Lulu Central Warehouses	warehouse	100%	100%	100%	100%	100%	100%
LuLu Hypermarket - Riyadh	Retail	100%	100%	100%	100%	100%	100%
Anwar Plaza - Riyadh	Retail	53%	44%	43%	43%	5.3%	5.3%
Narjes Plaza - Riyadh	Retail	100%	100%	100%	100%	100%	100%
Rama Plaza - Riyadh	Retail	37%	62%	57%	57%	56.9%	58.3%
Al Faris International School - Riyadh	Educational	100%	100%	100%	100%	100%	100%
Panda - Khamis Mushait	Retail	100%	100%	100%	100%	100%	100%
Hyper Panda - Al Marwa, Jeddah	Retail	100%	100%	100%	100%	100%	100%
Panda - Al Rawdah, Jeddah	Retail	100%	100%	100%	100%	100%	100%
Panda - Madain Al-Fahd, Jeddah	Retail	100%	100%	100%	100%	100%	100%
Al Andalus Center - Jeddah	Office	58%	58%	59%	61%	59.5%	58%
Blue Tower, Al Khobar	Office	100%	100%	100%	100%	100%	100%
Al Louloua Warehouses, Riyadh	warehouse	100%	100%	100%	100%	100%	100%
Jarir Bookstores- Riyadh	Retail	90%	90%	90%	90%	94.5%	90%
Average Occupancy Rates		91%	92%	92%	92%	90%	90%

The fund’s real estate portfolio consists of 19 properties, with two properties - Riyadh Avenue, Riyadh and Al-Henaki Business Center, Jeddah – currently undergoing acquisition procedures.

The majority of these properties, accounting for 52% of the fund’s total assets of 12 properties, are located in Riyadh. Jeddah follows closely, comprising 30% of the fund’s total assets, representing five properties.

The fund's real estate investments primarily focus on the retail sector, accounting for 43% of the acquisitions. The office sector follows closely at 26%.

According to available data, the market capitalization of real estate reached SAR 2.14 billion by the end of 2022, up 7% YoY but rose slightly compared to the first half of 2022.

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